Accounting / July 19, 2018 / Ariyah Lang
Other types of working capital include Initial working capital and Regular working capital. The capital required by the promoters to initiate the business is known as initial working capital. On the other hand, regular working capital is one that is required by the firm to carry on its operations effectively.
Working Capital Cycle or popularly known as operating cycle, is the length of time between the outflow and inflow of cash during the business operation. It is the time taken by the firm, for the payment of materials, wages and other expenses, entering into stock and realizing cash from the sale of the finished good.
We Also Think You’ll Like