Question

differenciate between working capital and fixed capital​

Answer 1

Answer:

Difference between working capital and fixed capital.

The primary difference between fixed capital and working capital is that Fixed Capital is the capital which is invested by the company in procuring the fixed assets required for the working of the business whereas working capital is the capital which is required by the company for the purpose of financing its day to day operations.

Answer 2

Answer:

Fixed capital is the investments done by the business for accruing long-term benefits. Working capital is the daily requirement pumped into the business.

Acquiring types of assets Fixed capital is used to acquire non-current assets of the company

. Working capital is used to acquire the current assets of the company

.

How liquid is it? Not at all liquid. Very much liquid.

Conversion It can’t be converted into cash or kind immediately. It can be converted into cash or kind immediately