TAX Accountant Question:
Tell me the difference between working capital and available cash/bank balance?
Answer:
The formula to calculate working capital = Current Assets – Current Liabilities. This looks fairly simple but working capital management practically involves – debt management, inventory management, revenue collection, short-term investments, planning payments as per the net working capital inflow.
| Previous Question | Next Question |
| Please explain what is the significance of reconciliation in accounting? | Tell us why do you want to become an accountant? |