Question

What is the fixed capital method

Answer 1

Explanation:

Thus fixed capital is that portion of the total capital outlay that is invested in fixed assets (such as land improvements, buildings, vehicles, plant and equipment), that stay in the business almost permanently—or at the very least, for more than one accounting period.

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Answer 2

✴ANSWER

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Fixed capital is also called a "fixed investment" and encompasses assets that are used continuously during the business's operation, according to the Business Dictionary. For example, the equipment used to produce merchandise would constitute fixed capital because it is not depleted with each use.

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