Should Provisions Be Included in Working Capital?

Should Provisions Be Included in Working Capital?
★ Key Takeaways

Working Capital Is a Gap in Cash Flow Due to the Lag Between When Operating Costs Are Paid out and When Customer Payments Are Received. .. . a Provision for Paid Leave, However, Would Come Under Working Capital.

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Direct Answer • Key Takeaway

Working Capital Is a Gap in Cash Flow Due to the Lag Between When Operating Costs Are Paid out and When Customer Payments Are Received. .. . a Provision for Paid Leave, However, Would Come Under Working Capital.

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Robert Thorne
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Robert Thorne

Robert Thorne covers electric vehicle innovations, autonomous driving systems, global mobility trends, and automotive engineering developments.