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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 8 years ago by John Moffat.
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  • August 28, 2016 at 5:52 am #335660
    Anuja Nair
    Member
    • Topics: 365
    • Replies: 353
    • ☆☆☆☆

    Hi sir,

    Net working capital
    = Current assets – current liabilities

    Working capital
    = current assets – trade payables

    Right ?

    August 28, 2016 at 6:32 am #335695
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    It depends on the context of the question.

    Strictly working capital and net working capital are the same thing and are current assets less current liabilities.

    However, usually in F9 the bank overdraft is left out as it is part of the financing for the rest of the working capital.

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