MANAGEMENT

BUISENESS MANAGEMENT

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 is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period.

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: -Fixed capital is the money or funds used in a business to procure fixed assets. It is a long-term investment that supports the business in the long run. Fixed capital is used to buy permanent assets such as buildings, office space, machinery, transportation, etc.

There is 1 question to complete.