Question

explai the fixed capital and working capital​

Answer 1

Answer:

Fixed capital refers to the investment of the enterprise in long term assets of the company. Working capital means the capital invested in the current assets of the company. Comprise of. Durable goods whose useful life is more than one accounting period.

.HOPE IT HELPS YOU

Answer 2

Fixed capital and working capital

Explanation:

• Fixed capital :   it implies the fund investment created in the long term belongings of the firm.
• it is a mandatory necessity of an enterprise during its primary stage , i.e. to begin the business concern or to administer the existing trade.
• It is that part  of the entire fund, which is not utilised for manufacturing but they are kept in trade for more than one account cycling.

• Working capital : is the instrument that measures the economic soundness and functional accuracy of the firm.
• It is the result of current assets minus current liabilities  , whereas current assets can be transformed into cash within 1 year, namely cash etc.