Question

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Categorize the following into fixed and working capital..You have to tell if they are fixed or working capital.
a- Diesel
b-Units of electricity.
c-Cash in hand
d-Tractor.

NO SPAMMING.

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Answer 1

Answer:

Fixed capital is the capital invested in fixed assets. Whereas, working capital is the capital used to fulfill daily requirements.

Fixed capital is tractor

Working capitals are diesal,unit of electricity and cash in hand.

Answer 2

Answer:

The above mentioned items can be categorized as below;

(i) Fixed Capital: Tractor. 

(ii)Working Capital: Diesel, Units of Electricity, Cash in Hand.

Explanation:

(i)Fixed capital because it can be used again and again.

(ii)All Items Are Working capitals because it is used up in the production process.

I hope it helps.