Skip to content
Sign inRegister

Ask the Tutor ACCA FM

Working capital

DDennis4y ago
Sir is it okay to say that working capital numerically represent the long term fund tied in current assets since current liabilities is removed? when we are talking about a high working capital does this mean we have invested high long term funds in working capital. if working capital is financed by over draft only then working capital would be 0 . can we investment in working capital is 0?
John MoffatJohn MoffatTutor4y ago#1
All correct, except that if the working capital is financed by overdraft then the long-term investment in working capital is zero.
Sign into reply to this topic.