What is fixed capital in business terms?

In balance sheet of busiesses , they have fixed capital, according to my knowledge it is like the money invested into business. but i m not sure , so if u can find the answer of What is fixed capital? and examples of Fixed capital in balance sheet.

It means the cost is constant regardless of revenue or production

In simple terms, businesses have two types of assets: current assets and fixed assets.

Current assets (primarily accounts receiveable and inventory) are financed with current liabilities (accounts payable and accrued expenses) and cash (from equity investment) or short term borrowing.

Fixed assets (land, buildings, machinery, furniture, equipment, etc.) are financed with term debt or equity. Investment in fixed assets is referred to as Capital Expenditures. Sometimes (confusingly) these assets are referred to as Fixed Capital.

Working Capital refers to current assets less current liabilities.
Working Capital and Fixed Assets are purchased with Capital provided by:
Revolving Credit Facilities;
Term Loans (including subordinated notes); and
Equity (preferred or common).

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　　Capital Investment 　　Business Investment 　　Business financing 　　Business Invest 　　Business Debt 　　Bond Investment 　　Angel Funds 　　Alternative Investment

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