One of the questions in my interview by an audit firm is...What are the types of Working Capital? But when i referred my C.A Final books there is nothing like types in working capital.......
Menu
Re:
Replies (2)
Good job Prabeer, I make your reply simplified
Types of Working Capital
-
Permanent working capital
-
Temporary or variable working capital
Permanent working capital
= minimum amount of investment in all current assets which is required at all times to carry out minimum level of business activities.
Permanent working capital = core current assets
Main features:
1. Amount of permanent working capital remains in the business in one form or other.
2. There is a positive correlation between the amount of permanent working capital and the size of the business.
3. Permanent working capital is permanently needed therefore it should be financed through long-term funds.
Temporary working capital:
The amount of temporary working capital fluctuates depending upon the changes in the production and sales.
Temporary working capital = fluctuating working capital = variable working capital
thanks for pasting, somani sir
Recent Topics :
- GSTR1 amendment Bulk bills
- Capital Gain on Sale of Gold
- GST SALES RETURN MISSING 2025-26 FY
- Enquiry on FAST-DS system generated email
- Capital gain on sale of agriculture land
- Demand from TRACES
- FY 2025-26 ITC CLAIM DUE DATE
- 96084000 and 48202000 HSN code ka Tax Rate kya hai
- Clarifications for intra day transactions
- CA FINAL FR FINANCIAL INSTRUMENTS (Ind AS 109) Dou
Related Topics :
CAclubindia
