Question

Fixed capital and working capital explain ?

Answer 1

Fixed capital is the investments done by the business for accruing long-term benefits. Working capital is the daily requirement pumped into the business. Fixed capital is used to acquire non-current assets of the company. Working capital is used to acquire the current assets of the company.

Answer 2

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. Durable goods whose useful life is more than one accounting period.