Question

What is your goal for this class (Working Capital Management) ? Do you have a specific expectation? For instance, do you now or in the past or in the future plan to have responsibilities for Accounts receivable or Accounts Payable and hope to increase your knowledge of the process?

Answer 1

A working capital is nothing but the difference between the current assets and currrent liablities.Current assets refers to those   assets that can be converted into cash within one year like Accounts Receivable.Current liablities are the day to day debts incurred by a business in its operation like credit purchase from vendors(Accounts Payable).

Working capital management refers to the efforts of the managemet towards effective management of current assets and cuurent liablities.The goal of working capital management is to ensure that a firm is able to continue its operation and that it has sufficient ability to satisfy both maturing short term debt and upcoming operational expenses.