Question

5. Categorise the following as working or fixed capital by giving a mason
(a) Computer (b) Raw material​

Answer 1

Answer:

Computer is a fixed capital. Fixed capital ia a concept in economics and accounting, first theoretically analyzed in some depth by the economist dacid recardo. It refers to any kind of real or physical capital (fixed asset) that is not used up in the production of a product.

Answer 2

(a). Computer: it is a fixed capital bcoz it can be used for more than 1 year

(b). Raw Materials: it is a working capital bcoz it can't be used for more than a year