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Business Studies: Working Capital

ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Working Capital

Refers to the capital of the business that is used for the day to day running of the business
Put simply it is the cash available for day-to-day operations of an organization
Strictly speaking though working capital is more than just cash
It includes all the assets […]

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ZIMSEC O Level Business Studies Notes: Business Finance and Accounting: Ratio Analysis:Gearing ratios

Gearing refers to the extent to which a business’s assets are financed using debt capital versus equity capital
Remember the balance sheet equation:
Assets = Capital (Equity) + Liabilities (Debt)
What this means is that all assets are purchased using either equity or debt finance
Equity […]

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