Question

diferentiate between fix capital and working capital? state any four kinds?

Answer 1

Fixed capital includes all investments that could be used daily in production whereas working capital need to be refreshed to be used again
types-fc-land,buildings,tools and machinery
wc-money, resources like water, raw materials etc.

Answer 2

Fixed Capital refers to the capital, which is invested in procuring fixed assets for business.

On the other hand, working capital represents the amount of money utilized for financing day to day business operations

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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.