What is excess of total liability over a total assets?
Deficit
Fund balance
Fund balance
The answer is Deficit. Anything where there is a loss is a deficit
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Hedge risk by matching the maturities of assets and liabilities. Permanent current assets are financed with long-term financing, while temporary current assets are financed with short-term financing. There are no excess funds.
Having assets in excess of liabilities; able to pay one's debts.
Management of short term assets (current assets) and short term liabilities (current liabilities) is commonly known as working capital management.Working capital is a requirement of funds to meet the day to day working expenses. In a simple term working capital is an excess of current assets over the current liabilities. In working capital management we focus more on receivables management, cash management and inventory management etc. Proper way of management of working capital is highly essential to ensure a dynamic stability of the financial position of an organization.
Net Interest refers to the revenue that is got from the difference between cost of servicing liabilities and the revenue generated by assets that bear interest. This considered to be an excess revenue.
Working capital represents the funds a company uses in its day-to-day trading operations. It's calculated as current assets minus current liabilities. Current assets are assets that are expected to be converted into cash or used up within one year, and current liabilities are obligations expected to be settled within one year. Here are common items that can be considered as part of working capital: Cash: The most liquid asset, including physical cash and bank account balances. Accounts Receivable: Money owed to the company by customers for goods or services that have been delivered but not yet paid for. Inventory: The value of goods or products that a company holds for sale, including raw materials, work-in-progress, and finished goods. Short-term Investments: Investments in securities or financial instruments that are easily convertible into cash within a year. Accounts Payable: Short-term debts owed by the company to suppliers for goods or services that have been received but not yet paid for. Accrued Liabilities: Obligations that have been incurred but not yet paid, such as salaries, utilities, or taxes. Short-term Loans: Borrowed funds that are due to be repaid within one year. Prepaid Expenses: Payments made in advance for services or goods that will be used within a year, such as prepaid rent or insurance. Working Capital Loans: Loans specifically taken to finance working capital needs. Other Current Assets and Liabilities: These can include items like deferred tax assets or liabilities, advances from customers, and other short-term financial assets or obligations. Working capital management is essential for a company's financial health, as it ensures that the business has enough resources to cover its short-term obligations and continue its operations smoothly. A positive working capital (current assets > current liabilities) is generally considered healthy, while a negative working capital (current liabilities > current assets) may indicate potential liquidity issues.
In order to reduce the dependence of businesses on banks for working capital, ceiling on bank credit to individual firms has been prescribed. Accordingly, businesses have to compute the current assets requirement on the basis of stipulations as to size. So, flabby inventory, speculative inventory cannot be carried on with bank finance. Normal current liabilities, other than bank finance, are also worked out considering industry and geographical features and factors. Working capital gap is the excess of current assets as per stipulations over normal current liabilities (other than bank assistance). Bank assistance for working capital shall be based on the working capital gap, instead of the current assets need of a business. This type of financing assistance by banks was introduced on the basis of recommendations of Tandon Committee
In 1996 it had assets in excess of $500 billion
working capital is the excess of current assets over current liabilities. if current assets are more than current liabilities, the company has surplus working capital, which is a good sign of liquidity. working capital is calculated as follows:Working capital = Current assets - Current liabilities