Difference between revisions of "Working capital"
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
:[[Working capital]]. Current assets. | :[[Working capital]]. Current assets. | ||
| + | According to [[Managerial Accounting by Braun, Tietz (5th edition)]], | ||
| + | :[[Working capital]]. Current assets minus current liabilities; measures a business's ability to meet its short-term obligations with its current assets. | ||
==Related concepts== | ==Related concepts== | ||
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*[[Introduction to Financial Management]]. | *[[Introduction to Financial Management]]. | ||
| − | [[Category: Financial Management]][[Category: Articles]] | + | [[Category: Financial Management]][[Category: Articles]][[Category: Accounting]] |
Latest revision as of 19:59, 16 July 2020
Working capital is a firm's investment in short-term assets—cash, marketable securities, inventory, and accounts receivable.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Working capital. A firm's investment in short-term assets—cash, marketable securities, inventory, and accounts receivable.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Working capital. Current assets.
According to Managerial Accounting by Braun, Tietz (5th edition),
- Working capital. Current assets minus current liabilities; measures a business's ability to meet its short-term obligations with its current assets.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
