Category: Acronyms

Meaning of Working Capital

Meaning of Working Capital

Working capital is defined as the ability of a company to carry out its activities normally in the short term. This can be calculated as the assets left over in relation to the short-term liabilities.

According to abbreviationfinder, working capital is useful to establish the equity balance of each business organization. It is a fundamental tool when carrying out an internal analysis of the firm, since it shows a very close link with the daily operations that take place in it.

Specifically, we can establish that all working capital is sustained or formed from the union of several fundamental elements. Among them, those that give it meaning and form, are negotiable securities, inventory, cash and finally what is called accounts receivable.

It is also important to highlight the fact that the main source of working capital is the sales made to customers. Meanwhile, we can determine that the fundamental use that is given to said capital is to undertake the disbursements of what is the cost of the goods that have been sold and also to face the different expenses that the operations that entail. have been rushed.

However, among other uses are also the reduction of debt, the purchase of non-current assets or the repurchase of outstanding capital shares.

When current assets exceed current liabilities, you are facing positive working capital. This means that the company has more liquid assets than debts with immediate maturity.

In the other sense, negative working capital reflects an equity imbalance, which does not necessarily represent that the company is bankrupt or that it has suspended its payments.

Negative working capital implies a need to increase current assets. This can be done through the sale of part of the fixed or non-current assets, to obtain the available asset. Other possibilities are to carry out capital increases or incur long-term debt.

In addition to all the above, it is important to also emphasize that there are two other types of working capital that are delimited based on time. Thus, first of all, we would have to refer to what is known as permanent working capital. This is defined as the set or quantity of current assets that are needed to cover in the long term what are the minimum needs.

And then secondly, we have temporary working capital. In this case, it can be determined that it is the amount of these current assets that is changing and modifying based on the requirements or needs of a seasonal nature that take place.

Among the sources of working capital, we can mention normal operations, the sale of bonds payable, the profit on the sale of negotiable securities, the contributions of funds from the owners, the sale of fixed assets, the refund of the tax. on income and bank loans.

It should be noted that the working capital should allow the firm to face any type of emergency or loss without going bankrupt.

Working Capital

Meaning of Modern Art

Meaning of Modern Art

Art, from the Latin ars, is a concept that makes mention of human creations that reflect the sensible vision of the real or imaginary world. The literature, the painting and theater are some of the disciplines of art, which in prehistory had a ritual function and that eventually morphed into aesthetics and recreation.

From the Latin modernus (“recent”), modern is that belonging to or relating to a recent period or the time of the speaker. Typically, the modern is seen as opposed to the classical.

According to abbreviationfinder, the notion of modern art, therefore, refers to artistic production created since the end of the 19th century. As with the idea of contemporary art, the expression can be linked to different historical times.

There are many figures that we could highlight as representatives of modern art. However, among the most significant are the following:
• Pablo Picasso, the Malaga painter stood out for being one of the fathers of Cubism and has bequeathed such important works as “The young ladies of Avignon”, “El Guernica” or “The dream ”
• Salvador Dali. This Catalan stood out both in the field of painting and sculpture and even in literature. Among his most famous works, the table entitled “The persistence of memory” should be highlighted.
• Claude Monet. As a creator of the movement called Impressionism, this French painter is known, who carried out works of great significance and recognition such as “Saint-Lazare station”, “The water lilies” or “The London Parliament at sunset”.
• Marcel Duchamp. This French artist, for his part, has gone down in history as the great inspiration of the pop movement. Without a doubt, his best-known work is the one entitled “The Source”.
• Paul Cezanne. Within post-impressionism, we can say that this French painter is framed, with outstanding paintings such as “The card players”, “The great bathers” or “Still life with apples and oranges”.

For some experts, modern art is the opposite of academic or traditional art. Modern art, in this sense, is related to the avant-garde and experimentation. Other specialists associate modern art with the Contemporary Age, so it would have started in the middle of the 18th century.

At a general level it can be said that modern art is a way of considering the aesthetics and function of art, where the main value is not the literal and exact representation of nature. After the development of photography, which accurately reflects reality, modern artists proposed new points of view on nature.

Given the value of modern art, there are many museums and exhibition centers around the world that specialize in it. Specifically, among the most significant spaces of this type are the following: the MOMA in New York, the Tate Modern in London or the Museum of Modern Art (MAM) in Madrid.

The historical stage that follows modern art is postmodern art, which emerged for many in the 1970s in rejection of the idea of ​​modernity.

Modern Art