Letters to the editor.(Brief Article)

I read the article titled `The Importance of Working Capital' by Philip McCosker (Management Accounting March 2000). This is a timely topic and the first job of most accountants would be to manage the working capital of a business.

While I agree with all that the writer has said about working capital, the definition of working capital may be misleading. Though most British text books and writers define working capital as current assets less current liabilities, most American academics prefer the definition that working capital equals current assets. In my view most of