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WORKING CAPITAL MANAGEMENT
Working capital management is an important financial term. It
revolves around two major financial components, namely the
current assets and current liabilities. These two components
make up the working capital of a business.
Working capital management deals with the managerial
accounting strategies that monitor the current assets and
liabilities. This is essential for a business to maintain an efficient
operation of the company. An effective working capital
management ensures that the business always has a sufficient
cash flow to support its short-term operating costs and debt
obligations.