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Net Working Capital can be said to be financed by: a Cash Credit b. Over Draft c.Equity Capital only d.Term Loan only e.Long term - sources of capital

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Question added by SHAIKH MOHAMMED BASHEER AHMED SHAIKH , Account Manager , Tarik Al Zahid Holding Company
Date Posted: 2014/04/19
Syed Hussaini
by Syed Hussaini , Senior Design engineer , private

E Long term source of capital

SREEDEVI SUNILKUMAR
by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline

A. Cash credit

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

Net working capital is that portion of long-term sources that forms margin for working capital.

Omar Siddique
by Omar Siddique , Senior Sales & Operations Manager , Talya Tourism LLC

a

Muhammad Afaq
by Muhammad Afaq , SENIOR FINANCIAL ACCOUNTANT , United Eddy Company (United Yousef M. Naghi Group)

managing  net working capital is related to short  term financing . so it can be arranged through

over draft, and  term loan. but in this paticular situation, the option is b. 

because option c means only  one source term(short term) loan is available for net working capital managment , which is wrong.

Muhammad Akram Shahzad Mughal
by Muhammad Akram Shahzad Mughal , Assist. Manager Inventory & Warehouse , KahrPlast Co.

D. Term Loan Only

Umer Aziz
by Umer Aziz , Senior Accountant , TERNA Bahrain Holding - GEK Group (www.terna.gr)

OPtion  A : Cash Credit

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Answer is A- Cash Credit

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Agree with the answer: Long term - sources of capital

Muhammad Javed
by Muhammad Javed , Manager Finance , EuroMoto

Answer: B

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