Classification of working capital, Financial Management

Assignment Help:

Q. Classification of Working Capital?

Classification of Working Capital: - Working Capital is able to be classified in two ways firstly on the basis of concept and secondly on the basis of its need.

(1) On the Basis of Concept: - Based on this working capital may be of two types:

(i) Gross Working Capital

(ii) Net Working Capital

(2) On the Basis of Need: - On this basis as well working capital may be of two types:

(i) Permanent Working Capital

(ii) Temporary Working Capital.


Related Discussions:- Classification of working capital

What is financial risk, What is Financial risk Financial risk is affe...

What is Financial risk Financial risk is affected by mixture of long-term financing or capital structure, of firm. Firms with high levels of long-term debt in proportion to t

Explain the purchasing power parity, Explain the purchasing power parity, b...

Explain the purchasing power parity, both of the absolute and relative versions. What causes the deviations from the purchasing power parity? Answer:  The absolute version of p

State about the detection risk, State about the Detection risk This is ...

State about the Detection risk This is the risk that auditors 'substantive procedures don't detect a material misstatement in an account balance or class of transactions. It is

Why is the coefficient of variation a better risk measure, Why is the coeff...

Why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk of capital budgeting projects? The coefficient of variatio

Explain to tr, TR has recently been promoted to his first management positi...

TR has recently been promoted to his first management position. In the past, he very much enjoyed working as part of a team, but is having some difficulty in adapting to his new ro

Illustrate the meaning of gearing, Illustrate the meaning of Gearing G...

Illustrate the meaning of Gearing Gearing is the relationship between equity anddebt. Debt is typically long term liabilities that the organisation has. Equity is all the shar

Sole proprietorship, Sole Proprietorship This business form is the lega...

Sole Proprietorship This business form is the legal default form for any person who makes no effort to organize the business otherwise but does business in the United States. T

Assignmment, what is logical process modelling? what is physical modelling?...

what is logical process modelling? what is physical modelling?

Leveraged buyout (lbo), Leveraged Buyout (LBO) Acquisition of an organi...

Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.

Floating rate notes (frns), Floating Rate Notes (FRNs): When interest r...

Floating Rate Notes (FRNs): When interest rates are high and the general outlook is either stable or indicating the possibility of a downward trend in return, then an investor

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd