Question

write the difference between fixed capital and working capital​

Answer 1

Explanation:

The major differences between working capital and fixed capital are as follows −

Working capital Fixed capital

Used for daily business activities. Used for long term benefits.

Acquires current assets.

Acquires non-current assets.

If needed, these can be converted into cash immediately.

If needed, these can’t be converted into cash immediately.

It has liquidity

It has no liquidity.

Serves short period of time.

Serves long period of time.

Less than one accounting period.

More than one accounting period.

Operational based.

Strategy based.

Company needs working capital for operations.

Company consumes indirectly

Answer 2

Working capital                                     Fixed capital

It has liquidity                                     It has no liquidity.

Serves short period of time.                   Serves long period of time.

Less than one accounting period.    More than one accounting period.

Operational based.                            Strategy based.