Define: Working-Capital Adjustment

Business, Legal & Accounting Glossary

Definition: Working-Capital Adjustment


Quick Summary of Working-Capital Adjustment


An adjustment made to the working capital of a business.



What is the dictionary definition of Working-Capital Adjustment?

Dictionary Definition


In current-cost accounting a working-capital adjustment (also known as monetary working-capital adjustment) is an adjustment made to the working capital of a business.

Bank balances and overdrafts may fluctuate with the volume of stock held, the debtors and the creditors.

If the bank balances and overdrafts arise from such fluctuations, they should also be included in the monetary working capital, together with any cash required to support the daily operations of the business.


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Definition Sources


Definitions for Working-Capital Adjustment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 12th July, 2019