<Dd> The very concept of capital is derived from this way of looking at things; one can say that capital, as a category, did not exist before double - entry bookkeeping . Capital can be defined as that amount of wealth which is used in making profits and which enters into the accounts ." </Dd> <P> Within classical economics, Adam Smith (Wealth of Nations, Book II, Chapter 1) distinguished fixed capital from circulating capital . The former designated physical assets not consumed in the production of a product (e.g. machines and storage facilities), while the latter referred to physical assets consumed in the process of production (e.g. raw materials and intermediate products). For an enterprise, both were types of capital . </P> <P> Karl Marx adds a distinction that is often confused with David Ricardo's . In Marxian theory, variable capital refers to a capitalist's investment in labor - power, seen as the only source of surplus - value . It is called "variable" since the amount of value it can produce varies from the amount it consumes, i.e., it creates new value . On the other hand, constant capital refers to investment in non-human factors of production, such as plant and machinery, which Marx takes to contribute only its own replacement value to the commodities it is used to produce . </P> <P> Investment or capital accumulation, in classical economic theory, is the production of increased capital . Investment requires that some goods be produced that are not immediately consumed, but instead used to produce other goods as capital goods . Investment is closely related to saving, though it is not the same . As Keynes pointed out, saving involves not spending all of one's income on current goods or services, while investment refers to spending on a specific type of goods, i.e., capital goods . </P>

Prepare a list of capital goods used by the following institutions by visiting them a farm