Acc 2525

Essay specific features

 

Issue:

Business

 

Written by:

Elizabeth R

 

Date added:

September 17, 2014

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 431

 

Was viewed:

956 times

 

Rating of current essay:

 
Essay content:

The decisions involved in Working capital management are short term decisions. Objectives of working capital management: The primary objective of working capital management is to ensure that sufficient cash is available to: • Meet day-to-day cash flow needs. • Minimize the risk of insolvency...
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Over-capitalization is when there are excessive stocks, debtors, cash; low return on investments and long-term funds tied up in non-earning short term assets. Overtrading leads to growing debtors and creditors, and if unchecked, ultimately to cash starvation. From a company's point of view, excess working capital means operating inefficiencies...
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