Question

Write any 3 differences between fixed capital and working capital...

Answer 1

fixed capital--- the capital which can views in production over many years are called fixed capital. tools machines buildings are the examples of fixed capital.

working capital-- the capital which is always required during production to make payments and buy other necessary items is called working capital.raw material and money are the examples ...

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Answer 2

Fixed capital refers to the investment of the enterprise in long term assets of the company,whereas working capital means the capital invested in the current assets of the company.
Durable goods are used in fixed capital whose useful life is more than one accounting period,while in working capital short term assets and liabilities are there.
Fixed capital is used to buy non current assets for business, whereas in working capital they are used for short term financing.