Financing some long-term needs with short-term funds. It also means that the business should be able to finance some degree of growth without having to acquire … Finance Working Capital Quiz. Question: 59 In Finance, "working Capital" Means The Same Thing As - Sword Tot 1.00 Select One: O A. A key part of financial modeling involves forecasting the balance sheet. To understand the difference between capital employed and working capital, you should know their definition. b) fixed assets. a) total assets. Positive working capital is always a good thing because it means that the business is about to meet its short-term obligations and bills with its liquid assets. Working capital refers to a specific subset of balance sheet items. 2 working capital missteps to avoid. Working capital is a metric used to measure a company's liquidity or its ability to generate cash to pay for its short term financial obligations. The amount of current assets that varies with seasonal requirements is referred to as _____ working capital. current asset. WC is the difference between a company’s current assets and its current liabilities. The definition of working capital (shown below) is simple: Working capital = Current assets - current liabilities Current Assets O C. Current Assets Minus Current Liabilities O D. Fixed Assets 60 The Starts At The Time Production Begins And Ends With The Collection Of Cash From The Sale Of The Product. Working capital can be far different for different companies, even those in the same industry. For instance, a business that relies heavily on seasonal sales might have far different working capital at the time of closing than it did when negotiations began or … c) current assets. Swered Tof 1.00 Select One: A. In a financial glossary, "financial market," "financial exchange," "capital market" and "securities exchange" mean the same thing. Working capital formula and definition. In finance, "working capital" means the same thing as. What is WC? Besides investors' money, other equity items include stock repurchases and retained earnings -- also known as undistributed profits or accumulated revenues. Don’t confuse short-term working capital needs and longer-term, permanent requirements; While it can be tempting to use a working capital line of credit to purchase machinery or real estate or to hire permanent employees, these expenditures call for different kinds of financing. ... To financial analysts, "working capital" means the same thing as _____. Total Assets A B. Click hereto get an answer to your question ️ In finance, "working capital" means the same thing as _____. d) current assets minus current liabilities. While both focus on obligations due within a year, thus exclude fixed assets/PP&E (which together make up total capital) they actually have two almost opposite meanings and implications. 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