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Working capital funding policy

Forums › ACCA Forums › ACCA FM Financial Management Forums › Working capital funding policy

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • August 18, 2015 at 8:26 am #267599
    aliimranacca007
    Member
    • Topics: 14
    • Replies: 12
    • ☆

    Wat is working capital funding policy and perment curent asset and fluctional current assets how they are use in working capital funding …i am confused please help ..

    August 18, 2015 at 10:06 am #267622
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54821
    • ☆☆☆☆☆

    You can find a full explanation in the free lecture notes and the free lectures that go with them, on the management of working capital.

    Permanent working capital is the long-term average need of working capital.
    Fluctuating (or temporary) working capital is the extra that is needed from time to time.

    It makes sense to fund permanent working capital from long-term finance, and temporary working capital from short-term finance.

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