Want this question answered?
Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)
Basic accounting equation = assets = liabilities + capitalit is so because capital as well as other liabilities have to be paid by the business at the dissolution time of business and at dissolution time or liquidation time business must have assets equal to liabilities plus owner's equity to pay all liabilities of business without going insolvent otherwise business will become insolvant and somebody will not get all it's liabilities completely cleared at the time of liquidation of business.
assets are what the business owned and liabilities are what the business owe.
Current assets minus current liabilities is called working capital and working capital is that free cash amount which is available for running day to day business functions.
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
the capital item in a business are assets and liabilities
Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)
Basic accounting equation = assets = liabilities + capitalit is so because capital as well as other liabilities have to be paid by the business at the dissolution time of business and at dissolution time or liquidation time business must have assets equal to liabilities plus owner's equity to pay all liabilities of business without going insolvent otherwise business will become insolvant and somebody will not get all it's liabilities completely cleared at the time of liquidation of business.
It is the basic accounting equation which shows the relationship of business assets toward liability and equity and it tells that all assets must generate enough money to pay all liabilities and owner's capital to be successful business.
Yes
assets are what the business owned and liabilities are what the business owe.
Current assets minus current liabilities is called working capital and working capital is that free cash amount which is available for running day to day business functions.
Assets - Capital = Liabilities
Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.
Assets= Capital+Liabilities So Assets=? Capital=100000 Liabilities=20000 Then Assets=100000-20000= 80000/-
Current assets minus current liabilities is called working capital and working capital is that free cash amount which is available for running day to day business functions.
No. Owners Equity is equal to Business Assets less Business Liabilities.