Optimal level of working capital is that level where company is capable to pay day to day expenses and company has enough cash to buy the stocks in case if it does not receive money from debtors on the time. This level is achieved by thinking and using the techniques of working capital management. We all know that both low level or over level of working capital is harmful for development of business. If company has not enough cash to repay its liability, it will create the risk of solvency and liquidity and company may go for liquidation. In case, company has over working capital, it will be misuse of money because that money is not gaining any earning and its opportunity cost will suffer by shareholders and ultimately it will decrease the value of share in share market. So, as finance manager, you should try to create equilibrium or optimal or optimum level of working capital.
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- advance
- advertising
- africa
- Amalgamation
- amendments
- Amortization
- announcements
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- assets
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- Australia
- B.Com.
- balance sheet
- bank
- Bank reconciliation
- banking
- basic accounting
- BBA
- benefits
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- bill
- black money
- blog
- bloggers
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- bookkeeping
- Branch Accounting - full tutorial
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- Budget variance
- business
- businessman
- CA
- calculator
- canada
- capital
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- cash
- cash book
- cash flow statement
- Chiense
- children
- china
- class
- coaching
- coins
- college
- commerce
- commerce students
- company
- computer
- computer accounting
- conference
- Contact vinod kumar
- Control Your Spending
- corporate accounting
- cost
- cost accounting
- cost center
- cost centre
- CPA
- credit
- credit card
- cs
- currency
- data
- Debit and credit
- debit cards
- debt
- debtor
- degree
- depletion
- depreciation
- Diwali Messages
- documents
- dollar
- domain
- Downloads
- Dubai
- e-accounting
- earning
- education
- Education Loans
- employee
- EPF
- ERP
- euromoney
- examination
- excel
- excise duty
- expenses
- factor of loan
- fans
- feature
- fifo
- FII
- fiji
- finacle
- finance
- Finance Journal Entries
- Financial
- financial accounting
- Financial Statements
- fire insurance
- flickr
- flow
- forensic
- forex
- formula
- france
- fraud
- free
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- function
- fund
- GAAP
- GDP
- gdr
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- gold
- goodwill
- goodwill accounting
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- How to treat FBT in Tally 9
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- income statement
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- indian railway
- Indonesia
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- infographics
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- insurance accounting
- Intangible
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- international
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- Introduction of Tally 9
- inventory
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- investment in Shares
- invoice
- IT
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- Job costing
- journal entries
- Journal Entries eBook Help
- Kalculate
- keyboard
- kuwait
- laptop
- law
- LBT
- learning
- lease
- lecture
- ledger
- leducation
- Leverage Analysis
- liabilities
- lifo
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- logical point
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- M.Com.
- m.phil
- malaysia
- management accounting
- manual accounting
- manufacturing account
- market
- marketing
- mastercard
- material
- MBA
- MCA
- media
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- mobile
- money
- ms word
- ms. excel
- multi currency in tally 9
- Multicurrency Accounting
- mutual fund
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- new and sacrifice ratio
- new york times
- new zealand
- news
- NGO
- nonprofit-accounting
- North Georgia Mountains
- Notification
- NPV
- NSE
- odbc
- office
- oman
- online application
- online accounting
- Online Accounting Course
- otcei
- pakistan
- parents
- Partnership
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- pie chart
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- pnb
- podcast
- ppf
- presentation
- price
- privacy policy
- prof. vinod kumar
- profit
- profit and loss account
- project management
- provision
- purchase
- puzzles
- quickbooks
- Quote
- quotes
- quotes of svtuition
- rating agency
- ratio analysis
- RBI
- readers
- real estate
- rectification of errors
- remote control
- reports
- reserves
- responsibility accounting
- retirement
- revenue
- Revenue reserves
- review
- risk
- rupees
- salary
- sale
- SAP
- saudi arabia
- saving
- sbi
- scholarship
- school
- SEBI
- security
- service tax
- share
- share trading
- Shares
- shri lanka
- singapore
- sms
- social accounting
- society
- solution
- South Africa
- stock
- stock exchange
- structure
- student
- students
- study
- subsidiary company
- svtuition
- swiss bank
- tally
- tally 9
- Tally 7.2
- Tally 9
- Tally.ERP 9
- TallyPrime
- tanzania
- tax
- Tax Accounting
- TDS
- teacher
- teaching
- technology
- test
- testimonial
- testimonials
- thailand
- tips
- trading
- trading on equity
- transaction
- trend
- trial balance
- truthfulness
- tuition
- UAE
- UGC - NET Commerce
- UK
- United Arab Emirates
- university
- usa
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- Video
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