Q1. What is a capital account in accounting? Answer: The capital account in accounting is different from the one in economics. While the capital account in economics is a part of the balance of payments of a country, the account in accounting is a part of the balance sheet of a business...
Anoperating leasediffers in structure and accounting treatment from a capital lease. It's a contract that allows for the use of an asset but doesn't convey any ownership rights. Operating leases used to be counted as off–balance sheet financing—meaning that neither the leased asset nor the ...
In economic terms, the current account deals with cash receipts, payments, and non-capital items, while the capital account reflects sources and utilization of capital. The sum of the current and capital accounts reflected in the balance of payments will always be zero, meaning that an equal an...
Meaning Capital is that part of wealth which can be used for further production of wealth. According to Marshall, “Capital consists of all kinds of wealth, other than free gifts of nature, which yield income.” Therefore, every type of wealth other than land which helps in further producti...
Though the term “capital” can refer to a company’s financial capital, it has a wider meaning in business. The term can refer to several types of capital, including debt, equity, and working capital. Long-term forms of capital include a company’s assets. Some of these assets, such as...
capitol –legislature building; also Capitol, meaning the building in which the U.S. Congress meets Abused, Confused, & Misused Words by Mary Embree Copyright © 2007, 2013 by Mary Embree cap·i·tal 1 (kăp′ĭ-tl) n. 1. a. A town or city that is the official seat of gover...
Accounting. assets remaining after deduction of liabilities; the net worth of a business. the ownership interest in a business. any source of profit, advantage, power, etc.; an asset or assets (usually used in combination): He has the political capital to push through the legislation. ...
The word Capital has meaning in the field of economics, oof course, but it also has several familiar meanings in business finance, accounting, and budgeting. In business generally, "Capital" turns up in scores of two-word terms such as Capital Expenditure, Capital Structure, and Capital Gains...
Harold Averkamp, CPA, MBA Definition A reference to stockholders’ equity. Seepaid-in capital. Also an adjective that references property, plant and equipment used in a business; for example,capital expendituresandcapital budgeting. Related Q&A ...
capital accounts,Accounting.accounts showing the net worth in a business enterprise. Discover More Word History and Origins Origin ofcapital account1 First recorded in1890–95 Discover More Compare Meanings How doescapital accountcompare to similar and commonly confused words? Explore the most common co...