What is the difference between Fixed Capital and Working Capital?
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The difference between fixed capital and working capital can be drawn clearly on the following grounds: Fixed capital is defined as the part of the total capital of the enterprise which is invested in long-term assets. Working Capital refers to the capital, which is used to perform day to day business operations
aaliyah2994:
examples of fixed capitals are machines such as turbines, computers etc.
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Hey mate.....
Here is your answer......
Working Capital refers to the capital, which is used to perform day to day business operations. Fixed capital investments include durable goods, which will remain in the business for more than one accounting period. On the other hand, Working capital comprises of short-term assets and liabilities of the business.
The primary function of the financial manager is to ensure availability of finance, to fulfill different purposes such as initial promotion, fixed capital, and working capital. Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capital represents the amount of money utilized for financing day to day business operations. It is required to support the proper functioning of the company’s business operations.
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Here is your answer......
Working Capital refers to the capital, which is used to perform day to day business operations. Fixed capital investments include durable goods, which will remain in the business for more than one accounting period. On the other hand, Working capital comprises of short-term assets and liabilities of the business.
The primary function of the financial manager is to ensure availability of finance, to fulfill different purposes such as initial promotion, fixed capital, and working capital. Fixed Capital refers to the capital, which is invested in procuring fixed assets for business. On the other hand, working capital represents the amount of money utilized for financing day to day business operations. It is required to support the proper functioning of the company’s business operations.
HOPE it helps you.
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