📝 One-liners · 87 cards

Working Capital Finance

Define Gross Working Capital (GWC) and Net Working Capital (NWC).
GWC = Total Current Assets. NWC = Current Assets − Current Liabilities.
What is the Working Capital Cycle (WCC)?
Time from purchasing raw materials to collecting cash from sales; also called Operating Cycle.
What is the minimum Current Ratio required by banks under Tandon's 2nd Method?
Minimum Current Ratio of 1.33 (or 1.25 under Nayak/Projected Turnover Method).
State the Tandon Committee's First Method lending requirement.
Borrower must bring minimum 25% of Working Capital Gap (WCG) from long-term sources.
🔒

Unlock 87 revision one-liners

Interactive flashcard deck — flip every card to drill questions and answers, mark the ones you got wrong, and revise smarter for Working Capital Finance.

🪙
Unlock cost
300 coins
30-day access · re-unlocks free for 30 days
Sign in to unlock