Preliminary communication
https://doi.org/10.20867/thm.9.2.16
NET CURRENT ASSETS IN FEASIBILITY STUDIES
Vanja Ivanović
; Faculty of tourism and hospitality management, University of Rijeka, Opatija, Croatia
Elvis Mujačević
orcid.org/0000-0003-3991-9324
; Faculty of tourism and hospitality management, University of Rijeka, Opatija, Croatia
Abstract
Net current assets consist primarily of cash, marketable securities, receivables and inventory. The balances in these accounts can be highly volatile as they respond quickly to changes in the firm’s operating environment. Medium-term planning and immediate reactions to changes in forecasts and conditions are required for effective management of the net current assets. Net current assets management is the functional area of finance that
covers all the current accounts of the firm. It is concerned with the adequacy of current assets as well as the level of risk posed by current liabilities. We can say that net current assets management is a discipline that seeks proper policies for managing current assets and liabilities and practical techniques for maximizing the benefits.
Keywords
net current assets; feasibility studies; cash; receivables; inventory; current liabilities; payables
Hrčak ID:
181481
URI
Publication date:
30.12.2003.
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