ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Industrial machines are an example of capital goods.

Detailed explanation-2: -Machinery, tools, means of transport, factory building, etc are fixed capital.

Detailed explanation-3: -Raw materials and money in hand are called working capital. Unlike tools, machines and buildings, these are used up in production.

Detailed explanation-4: -Fixed capital are assets of a business that are permanent in nature and are not intended to be disposed of by a business. These assets include land, buildings, plant, machinery, fixed equipment, furniture, fixtures, vehicles, livestock, etc.

Detailed explanation-5: -Cash, including money in bank accounts and undeposited checks from customers. Marketable securities, such as U.S. Treasury bills and money market funds. Short-term investments a company intends to sell within one year. Accounts receivable, minus any allowances for accounts that are unlikely to be paid.