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Question
Which one among the following is not fixed capital?
Which one among the following is not fixed capital?
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Solution
The correct option is A Raw materials
Answer: (A) Raw materials
Fixed Capital indicates the investment of the fund generated in the company’s long-term belongings. During its primary stage, it is a mandatory requirement of an organization. It is the part of the whole fund, that is not used for production but is held for more than 1 accounting period in trade. Its character is perpetual and remains within the company’s intangible and tangible properties.
Example of working capital is raw materials and cash in hand. They are used in manufacturing, in comparison to instruments, machinery and buildings.
Raw materials
Answer: (A) Raw materials
Fixed Capital indicates the investment of the fund generated in the company’s long-term belongings. During its primary stage, it is a mandatory requirement of an organization. It is the part of the whole fund, that is not used for production but is held for more than 1 accounting period in trade. Its character is perpetual and remains within the company’s intangible and tangible properties.
Example of working capital is raw materials and cash in hand. They are used in manufacturing, in comparison to instruments, machinery and buildings.
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