Question

different between fixed capital and working capital​

Answer 1

Explanation:

Fixed capital alludes to the amount of investment of company in long term assets. Working capital refers to the capital that is invested into the current assets of the organization. ... Working capital assets usually have more liquidity since they can promptly be changed over into cash

Answer 2

Explanation:

Fixed Capital

• Definition - Investing capital in the long term assets of an enterprise.

• Types of assets acquired - Used to acquire non-current assets for the company

• Liquidity - Fixed capital is not at all liquid

• Conversion to cash - Not possible to convert into cash

• Objective served - Serves strategy oriented objectives

Working Capital

• Definition - Working capital is the capital invested in the current assets of an enterprise.

• Types of assets acquired - Used to acquire current assets for the company

• Liquidity - Working capital is highly liquid

• Conversion to cash - Can be converted into cash

• Objective served - Serves operational objectives

Hope this is helpful