core current assets

Save Share

This query is : Resolved

Quick Summary

Core current assets are the minimum permanent current assets required to keep business operations running, such as essential raw materials, work-in-progress, finished goods, and stores. Under the Tandon Committee's third method, these assets should be financed through long-term funds rather than bank finance.

janak

janak (Querist)
Follow

23 December 2009 what is "core current assets" in the chapter of working capital requirement ?

Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)
Follow

24 December 2009 For calculating Maximum permissible bank finance 3 methods were recommended by Tandon Committee. In the third method it was suggested that Core Current Assets i.e. permanent current assets (that means bare minimum level of raw material, work in progress, finished goods and stores to keep the manufacturing process going on) should be financed from long term funds.

Message likes : 1 times

janak

janak (Querist)
Follow

25 December 2009 thanks a lot sir"

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now