What is meant by working capital? How does it differ from Fixed capital?
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Fixed capital alludes to the amount of investment of company in long term assets. Working capital refers to the capital that is invested into the current assets of the organization.
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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.
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