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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Calculation of working capital
Sir
Is it the correct approach to assume Net Current Assets – Cash balance = Working Capital, as long as the components of Net Current assets are not mentioned?
If you are referring to a specific question then say which. However normally working capital is the same as the net assets (so not subtracting the cash balance).
I am a little puzzled in that although working capital is examined on its own in Paper FM (was F9), in Paper AFM it is normally only relevant in investment appraisal questions and the definition of it is irrelevant for those questions.