Question

Difference between fixed capital and working capital for

Answer 1

Answer:

Working Capital refers to the capital, which is used to perform day to day business operations. 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.

Answer 2

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Working Capital is the funds which are used in the day to day business operations of a company or to manage their daily running cost.

Working Capital = Current Assets - Current Liabilities

Current Assets → Inventory, cash, and account receivables

Current Liabilities → Account Payables And Short Term Loans