Post by account_disabled on Mar 5, 2024 0:18:49 GMT -5
So, working capital in a quantitative concept is the entire amount of the company's current assets. Working capital in this sense is also known as gross working capital. . Qualitative Concept If the qualitative concept is only related to the amount of current assets. So, in this qualitative concept, working capital will be closely related to the amount of current debt/debts whose payment must be paid immediately. For this reason, some current assets must be available to be able to finance the company's financial obligations which must be carried out immediately.
They must not be used to finance the company's operations. The main goal is for the company to be able to maintain its liquidity level. Qualitative working capital is often referred to as net working capital. . Functional Concept The main basis for Whatsapp Number List the functional concept is that the costs stored as capital and also the funds spent have a function in obtaining business income. The concept is that costs will be used to generate income in the accounting period or what is usually called current income. Well, some other costs are also used in this accounting period, but not all of these funds are used to get current income.
Some of these funds are also used to generate income or for the next accounting period, which is generally known as future income. Example of Bond Capital: A simple example, let's say there is a business that invests some of its funds in government bond instruments. Then, these funds turned out to be successful in generating current income in the form of interest or income. This clothing business was actually created to trade clothes, not to make investments. So, the funds invested in these bond instruments can later be invested in the textile business Such as developing a business by purchasing new machines or raw materials. So, these funds are categorized as potential working.
They must not be used to finance the company's operations. The main goal is for the company to be able to maintain its liquidity level. Qualitative working capital is often referred to as net working capital. . Functional Concept The main basis for Whatsapp Number List the functional concept is that the costs stored as capital and also the funds spent have a function in obtaining business income. The concept is that costs will be used to generate income in the accounting period or what is usually called current income. Well, some other costs are also used in this accounting period, but not all of these funds are used to get current income.
Some of these funds are also used to generate income or for the next accounting period, which is generally known as future income. Example of Bond Capital: A simple example, let's say there is a business that invests some of its funds in government bond instruments. Then, these funds turned out to be successful in generating current income in the form of interest or income. This clothing business was actually created to trade clothes, not to make investments. So, the funds invested in these bond instruments can later be invested in the textile business Such as developing a business by purchasing new machines or raw materials. So, these funds are categorized as potential working.