Concept:Circulating capital, also called working capital or revolving capital, is the part of capital that is used up or converted into cash within one production cycle.
Examples include cash, raw materials, fuel, and inventory in process.
Fixed capital, such as machinery, is durable and is not consumed in a single cycle.
Explanation:In a factory, raw materials are consumed to create goods, money is used to pay operational expenses, and fuel is burnt to run machines.
All these items are circulating capital because they are used up or transformed during production.
Machinery, on the other hand, is bought once and is used repeatedly over many years.
Machines are not used up in a single production cycle, so they belong to fixed capital.
Thus, among the given options, machinery is the item that is not an example of circulating capital.
Answer:D. machinery