What does working capital advance mean?

1. "Advance working capital" means to advance working capital, and it is also a substitute for paying working capital.

2. Working capital is different from working capital. Working capital in a broad sense, also known as total working capital, refers to the funds invested by an enterprise in current assets, including accounts receivable, inventory, other receivables, notes payable, notes received in advance, withholding expenses, other payables, etc. Mainly in current liabilities.

Working capital in the narrow sense refers to the difference between the current assets and the current liabilities of an enterprise at a certain point in time. Working capital is a general term for the current assets and current liabilities of an enterprise. The balance of current assets minus current liabilities is known as net working capital.

Working capital management includes current asset management and current liability management.

3. Working capital is the capital that must be operated if an enterprise wants to be formally put into production, that is, working capital, which is temporarily invested and can be recovered when the enterprise ceases to operate. This part of the funds is for working capital purposes only.

4. The enterprise has insufficient funds, and it is necessary to supplement a part of the funds to make the normal operation of the enterprise, and the part of the supplement is that the reason why it is called "advance" is because it can be withdrawn after the end of the operation, and there is no increase or decrease.

Hello, working capital is if an enterprise wants to be officially put into production, there must be operating funds, that is, working capital, the nature of this part is temporary, and it can still be recovered when the enterprise ceases to operate. The funds in this sector are only for working capital.

Happy learning!

The working capital advance refers to the difference between the expansion of additional liquidity assets and the expansion of settlement current liabilities. Working capital = current assets Current liabilities = (total assets - non-current assets) - (total assets - owners' equity - long-term liabilities) = (owners' equity + long-term liabilities) - non-current capital mold assets = long-term capital - long-term assets.

The working capital advanced refers to the additional investment in current assets that the investment project has formed a production capacity. The working capital advanced for the investment is a net difference between the expansion of additional current assets and the expansion of settlement current liabilities. Working capital advanced = increased working capital - increased operating current liabilities.

AdvancesWorking capitalIt is given to the operating enterprise.

However, the advance of working capital is invested by the investment enterprise, and the advance of working capital is generally recovered at the end of the business period, and the working capital advance is generally in the investment period, and the cash outflow is used at the time of advance, which is accompanied by fixed assets during the end period.

** or scrapped.

Pad has a variety of meanings: pad (sinking); paddling (drowning); pad cracking (collapse rupture); Cushion sag (sagging. Also refers to being in trouble).

Layer it underneath with something else to make it taller, thicker, or insulating. Such as: take the soil pad fence; Put the mattress high; Bedding (feet.

dry soil for livestock sheds, pen pads, broken grass, etc.); Mats (things that are laid under utensils for trampling. It also refers to being angered to vent anger; Kick the nest and smooth the road. By extension, it is for others to trample on, to receive on behalf of others) to pay for others temporarily.

For example: I didn't bring any money today, you should make a cushion first; pads; Advances. A noisy passing action of catching the ball in volleyball.

For example, the ball is up, but she falls to the ground. Fill the emptiness in your stomach.

For example: If you are hungry and I still have some dumplings here, you can make a cushion first. Prop up.

Such as: mat play (the main play is late for some reason, and the small play is temporarily staged). Bury.

For example: advance wealth (buried pants hidden property). Anything spread on a bed, chair, or other utensil.

Such as: chair cushions; Insole; Cushion; kneeling pads; Straw mats. Low-lying.

For example: cushion pass (this refers to the low-lying and damp place of residence, which is a metaphor for the hardship of life); Pad wetness (low-lying dampness).

Summary. Working capital refers to the project advance, used to support the project operation of the funds, this kind of funds can be repeatedly recycled after investment, at the end of the project to recover, he is the occupation of funds, not consumption, does not affect the current profit and loss.

Hello, I'm glad to answer for you I have seen your question, I am helping you inquire about the relevant information, please wait, I will reply to you immediately

Operating costs are the consumption of resources, which will not be recovered after use, and they are directly included in the profit or loss at maturity, reducing the amount of taxable income tax.

Working capital is to refer to the project advance, used to support the project next to the collapse of the fund, this kind of funds can be repeatedly recycled after investment, at the end of the project to recover, he is the occupation of the funds of the project, not consumption, does not affect the current profit and loss.

It means to advance working capital, that is, to pay working capital instead of working capital, or to pay total working capital. For example, enterprise A has been able to produce and operate normally, but it needs to feed to produce products, and the money for feeding part of the materials needs to be advanced first, and the products can be sold back after they are produced. It is a liquid asset.

The working capital formula is:

Working Capital = Current Assets Current Liabilities = (Total Assets - Non-Current Assets) - (Total Assets - Owners' Equity - Long-Term Liabilities) = (Owners' Equity + Long-Term Liabilities) - Non-Current Assets = Long-Term Capital - Long-Term Assets.

This concept is relatively easy to understand literally, that is, the funds involved in the recycling of the project, which have the characteristics of investment at the beginning of the period and recovery at the end of the period.

Consider in Financial Management:

In the first year, the sales of 30 million, the advance of 100 yuan, the second year, the sales of 30% higher than the first 3000 (1 + 30%), because the number of 100 advances is not enough, to increase by 15%. The previous advance has been hooked, the advance funds are recycled, invested in the first year, recovered in the second year, and only calculate the increment 100 (1+15%)-100.