Working capital loan

AS 488 views 2 replies

Please tell 

Whether working capital loan is the part of operating activities or Financing Activities

Replies (2)

Operating Activites as Working Capital is a short term fund which is to be renewed every year.

Working capital loan comes under Operating activity bcz it purpose is to finance every day operations of the company.It is not used to buy long term assests and investments instead it is used to clear up creditors,wages etc...


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