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Management of working capital 1

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Management of working capital 1

  • This topic has 5 replies, 2 voices, and was last updated 6 years ago by Avatarvishnutv.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • January 8, 2020 at 6:03 am #557104
    Avatarvishnutv
    Member
    • Topics: 34
    • Replies: 30
    • ☆☆

    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?

    January 8, 2020 at 7:00 am #557109
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    Yes – they are paid in cash and cash is part of the working capital.

    January 8, 2020 at 7:22 am #557111
    Avatarvishnutv
    Member
    • Topics: 34
    • Replies: 30
    • ☆☆

    dividend and interest is liability?

    January 8, 2020 at 7:28 am #557112
    Avatarvishnutv
    Member
    • Topics: 34
    • Replies: 30
    • ☆☆

    What does it mean by investing in less liquid asset in order to maximise return?

    January 8, 2020 at 2:29 pm #557160
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54838
    • ☆☆☆☆☆

    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.

    January 8, 2020 at 3:44 pm #557194
    Avatarvishnutv
    Member
    • Topics: 34
    • Replies: 30
    • ☆☆

    Ok

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    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Management of working capital 1’ is closed to new replies.

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