Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — Only two
Concept & Option Breakdown
Standard Reference Verified- Pair 1 is incorrectly matched: A farmer's plough is a durable tool used repeatedly over multiple production cycles, making it part of fixed capital, not working capital.
- Pair 2 is correctly matched: A computer is a long-term productive asset used over several accounting periods without being consumed in a single cycle, classifying it as fixed capital.
- Pair 3 is incorrectly matched: Yarn is a raw material consumed during the production of cloth, which makes it working capital, not fixed capital.
- Pair 4 is correctly matched: Petrol is consumable energy required continuously during production or transport, falling under working capital.
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