StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Essay example - BSc Accounting and Finance: Financial Management

Only on StudentShare
Masters
Essay
Finance & Accounting
Pages 11 (2761 words)
Current paper reviews the value of working capital management for modern organization; reference is made to the common characteristics of working capital and its common use for developing critical business decisions. At the same time, the practices available for the management of working capital are presented and evaluated. …

Extract of sample

In order to understand the value of working capital for modern businesses it would be necessary to describe the key elements of the particular concept. Then its role in the development of business activities will be made clear. In accordance with Van Horne et al the term ‘working capital’ is usually described as the current assets of the organization. However, this description is not fully accurate.
Indeed, working capital reflects the organization’s current assets but its form is not standardized. In fact, working capital can be classified by referring either: a) to its components or
b) the time. In the context of its components, the working capital is characterized as ‘cash, inventory or receivables’.
On the other hand, working capital can be used for serving either long term organizational needs – in this case is characterized as permanent working capital – or short term needs; in the last case, the working capital is characterized as temporary working capital and reflects the current assets used for covering emergent organizational needs. The key differentiation between the permanent and the temporary working capital is that the former is likely to be standardized while the latter is differentiated in accordance with the seasonal needs of the organization. ...
Download paper
Not exactly what you need?

Related papers

Finance and Accounting Essay: Case Study: Manchester Meerkat Company
In this case, a budget is a financial preparation that covers a specific period of business operations (Berry et. al. 2006). The budget usually shows different expectations of expenditure and revenues of a business. Under normal circumstances, a large organization creates departmental budgets while small organizations create a single budget for the whole firm. The comparison between the budget…
10 pages (2510 words)
Finance and Accounting Essay: Advanced Financial Accounting
There were some recent changes made in IAS 19 during June 2011 by the IASB and it has a significant impact on the accounting procedures to be followed by the entities regarding defined benefit schemes in the form of pension funds. The time was just right for these changes to take place because it was long awaited by people for IASB to make such changes. …
12 pages (3012 words)
The Balanced Scorecard (BSC) method of Lloyds TSB Bank
The Balanced Scorecard (BSC) method of Lloyds TSB Bank …
11 pages (2761 words)
Finance and accounting essay: Go Ahead Plc.
This in turn has been made possible through the use of a tool called Balanced Scorecard. The report has been structured in a logical flow starting with the vision statement and the strategy the company needs to adopt in order to be en route of achievement of its vision in the long run. Later, the report provides a detailed balanced scorecard tailored according to the vision and the needs of…
10 pages (2510 words)
Financial Management and Accounting
69). Such facilities are licensed under state regulatory bodies with approval of either Medicare or Medicaid, or both of them, and can be a simple facility or a complex one under corporate management. The facility’s main purpose is to offer care services to people who cannot maintain sufficient self-care at home, such as the physically challenged, those who are mentally incapacitated and…
3 pages (753 words)
Corporate finance and Financial Accounting
However, it is the responsibility of the organization to formulate and implement appropriate strategies to deal with risks. For this case, the management of XYZ opted for acquisition of the company. XYZ sold itself to ABC International in exchange for $8.2 billion. After the acquisition, XYZ estimated that the worth of its shares would be placed at $100 per share. After the acquisition, ABC would…
8 pages (2008 words)
strategic management accounting
It is hoped that, as a new discipline in accounting, strategic management, will be very resourceful to accountants and managers, and that it will improve the relevance of the accounting profession in areas such as strategic thinking and the qualitative features of management (Shah, Muhammad & Malik 2011, p.1). Strategic management accounting (SMA) has been introduced as a field of study in the…
3 pages (753 words)