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AFM Capsule Cards PRO Working Capital Managemen…
Cash Credit (CC) is a common facility. How does a Working Capital Demand Loan (WCDL) differ in structure for a borrower?
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Working Capital Demand Loan (WCDL)
Working Capital Management 40
WA 40
AFM Capsule Cards PRO Working Capital Managemen…
Selling on credit locks up a firm's cash. What is 'Factoring', and how does it help a business manage its receivables compared to a standard bank loan?
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Factoring vs Bank Borrowing
Working Capital Management 40
WA 40
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Every manufacturing or trading business undergoes a continuous operational loop. What are the key stages involved in a typical Working Capital Cycle?
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Working Capital Cycle
Working Capital Management 39
WA 39
AFM Capsule Cards PRO Working Capital Managemen…
For businesses with highly seasonal demand (like sugar or firecrackers), standard holding norms fail. Which assessment method is best suited for such industries?
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Cash Budget Method of Assessment
Working Capital Management 39
WA 39
AFM Capsule Cards PRO Working Capital Managemen…
Banks do not finance 100% of a firm's working capital needs. What is the minimum percentage of current assets generally expected to be funded by the firm's own long-term funds?
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Promoter's Margin in Working Capital
Working Capital Management 38
WA 38
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AFM Capsule Cards PRO Working Capital Managemen…
Assessing working capital for small businesses using complex Tandon norms is difficult. What simplified method did the Nayak Committee introduce for SMEs?
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Turnover Method (Nayak Committee)
Working Capital Management 38
WA 38
AFM Capsule Cards PRO Working Capital Managemen…
The RBI heavily regulates who can issue Commercial Papers. What is the minimum net worth requirement and the permitted maturity period for a CP?
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CP Eligibility and Limits
Working Capital Management 36
WA 36
AFM Capsule Cards PRO Working Capital Managemen…
To enforce stricter financial discipline, the Tandon Committee recommended a tighter lending norm. How is the margin calculated under the 'Second Method of Lending'?
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Tandon Committee: Second Method
Working Capital Management 36
WA 36
AFM Capsule Cards PRO Working Capital Managemen…
Inventory management directly impacts profitability. What happens to a firm's working capital requirement if it speeds up its stock turnover ratio?
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Impact of Fast Turnover
Working Capital Management 35
WA 35
AFM Capsule Cards PRO Working Capital Managemen…
The Nayak Committee's Turnover Method provides quick approvals, but it isn't for massive corporations. Up to what credit limit is this method usually applied by banks?
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Turnover Method Applicability
Working Capital Management 35
WA 35
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AFM Capsule Cards PRO Working Capital Managemen…
Bankers often look at the margin a firm brings to its short-term operations. How is 'Net Working Capital' (NWC) mathematically defined?
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Net Working Capital (NWC)
Working Capital Management 35
WA 35
AFM Capsule Cards PRO Working Capital Managemen…
Large corporations can bypass banks for short-term funds. What is a Commercial Paper (CP), and what kind of instrument is it?
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Commercial Paper (CP) Basics
Working Capital Management 34
WA 34
AFM Capsule Cards PRO Working Capital Managemen…
Exporters face unique payment delays and risks. What is 'Forfaiting', and how does its recourse rule differ from standard factoring?
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Forfaiting for Exporters
Working Capital Management 33
WA 33
AFM Capsule Cards PRO Working Capital Managemen…
The Tandon Committee formalized lending norms. Under the 'First Method of Lending', how much margin (NWC) is the enterprise required to bring?
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Tandon Committee: First Method
Working Capital Management 32
WA 32
AFM Capsule Cards PRO Working Capital Managemen…
Financial analysts use different terms for asset totals. If Net Working Capital is CA minus CL, what exactly does 'Gross Working Capital' represent?
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Gross Working Capital
Working Capital Management 31
WA 31
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AFM Capsule Cards PRO Working Capital Managemen…
Firms don't always pay expenses immediately. How do 'Accruals' function as an automatic, short-term source of working capital finance?
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Accruals as a Finance Source
Working Capital Management 31
WA 31
AFM Capsule Cards PRO Working Capital Managemen…
When a company has surplus cash, it might lend to another company. What are the key features of Inter-Corporate Deposits (ICDs) used for working capital?
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Inter-Corporate Deposits (ICD)
Working Capital Management 31
WA 31
AFM Capsule Cards PRO Working Capital Managemen…
Companies don't rely solely on banks; they can borrow from the public. What governs the raising of Public Deposits by a corporate firm?
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Public Deposits for Corporates
Working Capital Management 30
WA 30
AFM Capsule Cards PRO Working Capital Managemen…
Suppliers often give buyers time to pay for raw materials. What primary factors dictate the amount of 'Trade Credit' a firm can secure?
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Trade Credit Dynamics
Working Capital Management 27
WA 27
AFM Capsule Cards PRO Working Capital Managemen…
Existing shareholders occasionally help fund working capital. What are 'Rights Debentures' in the context of short-term financing?
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Rights Debentures
Working Capital Management 24
WA 24
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Working Capital Management — JAIIB AFM Capsules

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Working Capital Demand Loan (WCDL) Cash Credit (CC) is a common facility. How does a Working Capital Demand Loan (WCDL) differ in structure… Factoring vs Bank Borrowing Selling on credit locks up a firm's cash. What is 'Factoring', and how does it help a business manage it… Working Capital Cycle Every manufacturing or trading business undergoes a continuous operational loop. What are the key stages… Cash Budget Method of Assessment For businesses with highly seasonal demand (like sugar or firecrackers), standard holding norms fail. Wh… Promoter's Margin in Working Capital Banks do not finance 100% of a firm's working capital needs. What is the minimum percentage of current a… Turnover Method (Nayak Committee) Assessing working capital for small businesses using complex Tandon norms is difficult. What simplified… CP Eligibility and Limits The RBI heavily regulates who can issue Commercial Papers. What is the minimum net worth requirement and… Tandon Committee: Second Method To enforce stricter financial discipline, the Tandon Committee recommended a tighter lending norm. How i… Impact of Fast Turnover Inventory management directly impacts profitability. What happens to a firm's working capital requiremen… Turnover Method Applicability The Nayak Committee's Turnover Method provides quick approvals, but it isn't for massive corporations. U… Net Working Capital (NWC) Bankers often look at the margin a firm brings to its short-term operations. How is 'Net Working Capital… Commercial Paper (CP) Basics Large corporations can bypass banks for short-term funds. What is a Commercial Paper (CP), and what kind… Forfaiting for Exporters Exporters face unique payment delays and risks. What is 'Forfaiting', and how does its recourse rule dif… Tandon Committee: First Method The Tandon Committee formalized lending norms. Under the 'First Method of Lending', how much margin (NWC… Gross Working Capital Financial analysts use different terms for asset totals. If Net Working Capital is CA minus CL, what exa… Accruals as a Finance Source Firms don't always pay expenses immediately. How do 'Accruals' function as an automatic, short-term sour… Inter-Corporate Deposits (ICD) When a company has surplus cash, it might lend to another company. What are the key features of Inter-Co… Public Deposits for Corporates Companies don't rely solely on banks; they can borrow from the public. What governs the raising of Publi… Trade Credit Dynamics Suppliers often give buyers time to pay for raw materials. What primary factors dictate the amount of 'T… Rights Debentures Existing shareholders occasionally help fund working capital. What are 'Rights Debentures' in the contex…
Chapters in this paper
Definition, Scope & Accounting Standards including Ind AS Balance Sheet Equation Financial Management - An Overview Taxation: Income Tax/TDS/Deferred Tax Basic Accountancy Procedures Preparation of Final Accounts Ratio Analysis Goods & Services Tax Maintenance of Cash/Subsidiary Books and Ledger Company Accounts - I Financial Mathematics - Calculation of Interest and Annuities An Overview of Cost & Management Accounting Bank Reconciliation Statement Company Accounts - II Financial Mathematics - Calculation of YTM Costing Methods
Modules in AFM
MODULE A: Accounting Principles and Processes MODULE B: Financial Statements and Core Banking Systems MODULE C: Financial Management MODULE D: Taxation and Fundamentals of Costing
JAIIB papers
IE-IFS — Indian Economy & Indian Financial System PPB — Principles & Practices of Banking AFM — Accounting & Financial Management for Bankers RBWM — Retail Banking & Wealth Management
Study formats
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