• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams Results

Comments & Instant poll

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

working capital

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › working capital

  • This topic has 1 reply, 2 voices, and was last updated 12 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 4, 2013 at 10:14 pm #129214
    omerchamp
    Member
    • Topics: 3
    • Replies: 4
    • ☆

    sir what is difference between over-capitalization and over-trading

    June 5, 2013 at 8:51 am #129299
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    Over-capitalisation is when the working capital is too high (because, for example, we are taking too long to collect receivables).

    Over-trading is when the company has been expanding rapidly and so with higher sales they are needing to accept higher receivables etc., but they have not raised more long-term capital to finance the extra working capital needed and so they are forced into having an overdraft and therefore potential liquidity problems.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • lexb on Professionalism, ethical codes and the public interest – ACCA Strategic Business Leader (SBL)
  • billgates on The nature and structure of organisations – ACCA Paper BT
  • billgates on The nature and structure of organisations – ACCA Paper BT
  • sanayyaa on ACCA TX-UK FA2025 Chapter 23 Inheritance Tax
  • sanayyaa on ACCA TX-UK FA2025 Chapter 23 Inheritance Tax

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in