Question

differnce between fixed capital and working capital​

Answer 1

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

Fixed capital investments include durable goods, which will remainin the business for more than one accounting period.

On the other hand, Working capital comprises of short-term assets and liabilities of the business.


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Answer 2

Fixed capital is used to acquire non current assets which would serve the business for more than one accounting period.

On the other hand, Working capital is used to serve the business on day to day basis fulfilling the requirements of everyday production.

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