What Is Working Capital,and How Is Working Capital Affected by Short-Term

question 28

Essay

What is working capital,and how is working capital affected by short-term financing?

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Definitions:

Comprehensive Income

Comprehensive income is the total change in equity for a business enterprise during a period from transactions and other events and circumstances from non-owner sources, including all non-owner changes in equity such as unrealized gains and losses on investments.

Unrealized Gains

Increases in the value of an asset that has not been sold and therefore the profit has not been realized.

Dividends Paid

Cash or stock payments made by a company to its shareholders out of its profits.

Exchange Rate

The cost of a nation's currency expressed in the currency of a different nation.