Definition : Operating fund

Financial resources available to a syndicate of co-owners to face the day to day expenses, as they fall due. It represents the ability to meet short-term financial obligations. In mathematical terms, the working capital is calculated as follows: Current assets - Current liabilities = Working capital. The syndicat is able to pay its bills as long as the working capital is positive.

 WARNING ! The working capital should not be confused with the concept of funds established by the fund basis of accounting.