BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Fixed capital means that capital which is used in purchasing ____ assets.
A
Current assets
B
Fixed assets
C
Material
D
All the above
Explanation: 

Detailed explanation-1: -Fixed capital consists of assets that are not consumed or destroyed in the production of a good or service and can be used multiple times. Property, plant, and equipment are standard fixed capital items. Fixed capital assets are usually illiquid items and are depreciated over time.

Detailed explanation-2: -Fixed capital is the amount of investment done by a company in its long-term assets, as known as fixed assets.

Detailed explanation-3: -Fixed capital is the value of capital assets available for production purposes at a given point in time. All capital goods are included which are accounted for in gross fixed capital formation. This is measured by the value of acquisitions less disposals of new or existing fixed assets.

Detailed explanation-4: -Fixed capital, or fixed assets or capital assets, refers to a company’s long-term assets, such as land, buildings, or equipment that is used in producing goods or services.

Detailed explanation-5: -Capital assets are also sometimes referred to as fixed assets. They can be equipment, machinery, computers, or cars, or anything else that has quite a high cost and is going to be used in your business for more than about a year.

There is 1 question to complete.