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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Management of working capital 1
In long term finance
In share capital & reserve and non current liabilities dividend and interest should be paid so interest is paid from working capital?
Yes – they are paid in cash and cash is part of the working capital.
dividend and interest is liability?
What does it mean by investing in less liquid asset in order to maximise return?
A liquid asset is one that can be converted into cash quickly. A less liquid asset takes longer to get the cash back – it is a longer term investment.
The longer you invest for, then the higher return you are likely to get.
Ok