Question

Differentiate between fixed and working capital?
(Agricultural science)

Answer 1

Answer:

Fixed capital refers to any kind of physical capital. i.e. fixed assets. Working capital refers to current assets minus current liabilities. It stays in business almost permanently i.e. for more than one accounting year.

Answer 2

Answer:

Fixed Capital :-

1 - Required for long - term.

2 - Money neede to buy fixed assets.

3 - It is used to purchase land, building, furniture, etc.

4 - Investment in fixed capital implies.

Working Capital :-

1 - Required for short - term.

2 - Money needed to buy current assets.

3 - It is used to purchase raw material, payment of utility

bills, etc.

4 - Investment in working capital is less.

Hope it helps you, thank you.

Explanation:

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