Question

are there fixed assets is the example of working capital

Answer 1

Fixed capital investments include durable goods, which will remain in the business for more than one accounting period. On the other hand, Working capital comprises of short-term assets and liabilities of the business. Fixed capital is relatively illiquid because it cannot be converted into cash easily.

Examples of alternative formulas: Current Assets – Cash – Current Liabilities (excludes cash) Accounts Receivable + Inventory – Accounts Payable (this represents only the “core” accounts that make up working capital in day-to-day operations of the business)

________________________

cRAZY pRINCE

Answer 2

The term fixed assets generally refers to the long-term assets, tangible assets used in a business that are classified as property, plant and equipment. Examples of fixed assets are land, buildings, manufacturing equipment, office equipment, furniture, fixtures, and vehicles.