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WHAT IS CAPITAL?
Capital is simply known as the resources supplied to a business by the owners. A better definition is; Capital is referred to as any financial resources or assets owned by a business that are beneficial in boosting growth and generating revenue. Capital can include items such as cash or any other assets introduced into a business by the owners. One important thing about capital is that it is very different from money! Money is used by a business to acquire and sell goods or services within the business itself or between customers and other businesses. This allows the business to gain the money, including profits, to be received in a short time scale. On the other hand, capital is used with the purpose to do activities that attempt to develop and improve the future of the business. The activities should be valuable for the business to generate sustainable revenue in the long-term.

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DISCLAIMER
Our content is to be used as an EDUCATIONAL TOOL that aims to provide a foundation for individuals to learn financial accounting, management accounting and bookkeeping topics as practiced in the United Kingdom. As a result, not all complexities are shown or provided. Examples may include but are not limited to; differences between financial reporting, accounting standards or tax treatments. We are NOT ENGAGED in the providing of accounting, bookkeeping, financial, investment, tax, or other professional services. You should consult with a qualified or professional such as an accountant, business advisor, investment specialist, lawyer, solicitor, etc., with regards to specific facts and situations.

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