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Q.

Which of the following is not a fixed capital?

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a

Tools

b

Machines

c

Buildings

d

Cash in hand

answer is D.

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Detailed Solution

Cash in hand is not fixed capital.
Physical capital, one of the production components, is fixed capital. The term "fixed capital" describes assets that may be utilised for several years, such as computers, structures, machinery, equipment, etc. An investment in long-term assets for corporate operations is known as fixed capital. For instance, for a farmer, fixed capital would include his land, tractor, threshers, livestock, and whatever else he uses to produce things and keeps as an asset for a long time or even permanently. On the other hand, working capital, employed in day-to-day business operations, is cash.

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Which of the following is not a fixed capital?