Fundamental Accounting Principles
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 17, Problem 6DQ
To determine

Concept Introduction:

Working capital: Working capital can be defined as the excess of the current assets over the current liabilities. It is a measure of both a company’s operational efficiency and its short-term financial health. Working capital can be calculated as under –

Working Capital = Total current assets  Total current liabilities

To discuss:

Why working capital is given special attention in the process of analysing balance sheets.

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Fundamental Accounting Principles

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Working capital explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XvHAlui-Bno;License: Standard Youtube License