Difference between fixed capital and working …

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Difference between fixed capital and working capital.

Posted by Fun Abacus Abacus 8 years, 7 months ago

CBSE > Class 09 > Social Science

2 answers

Jivesh Mandaokar 5 years, 5 months ago

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Rupender Singh 8 years, 7 months ago

1. Fixed capital refers to the investment of the enterprise in long term assets of the company while Working capital means the capital invested in the current assets of the company.

2. Fixed captal comprises Durable goods whose useful life is more than one accounting period. Working capital comprises Short term assets and liabilities

3. Fixec capital Comparatively illiquid. Working capital Highly liquid..

4. Fixed capital Used to buy non-current assets for business. Working capital Used for short term financing.

5. Fixed capital serves Strategic objectives. Workig capital serves Operational objectives.

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