Question

Difference between fixed capital and working capital

Answer 1

Fixed capital investments represent the acquisition and maintenance of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual property. Working capital refers to the deployment of financial resources in the day-to-day business operations.

Answer 2

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Fixed capital refers to the investment of the enterprise in long term assets of the company. Working capital means the capital invested in the currentassets of the company. Durable goods whose useful life is more than one accounting period. Used to buy non-current assets for business.