Write briefly on these account terms: a) Authorized capital. b) Issued capital. c) Working capital. – NABTEB QUESTION

Authorized Capital:- This is the amount which a public company is allowed to raise from the public for its business operations. It is also called registered or nominal capital, it is stated in the memorandum of association of company and approved by the registrar of companies.

Issuing Capital: It is that part of the Authorized Capital which a public company has decided to issue out to the public for subscription.

Working Capital: It is the amount which a business has set aside for its day-today operations. It is the difference between current assets current liabilities.