Whats the difference between capital and assets?
Sure, here's the difference between capital and assets:
Capital:
- Refers to the money that a company or individual invests to acquire or build something of value.
- It is typically used to fund long-term projects or investments that will generate future income or revenue.
- Examples of capital investments include:
- Buying a new building
- Investing in equipment
- Purchasing a franchise
- Starting a business
Assets:
- Refers to the resources that a company or individual owns that can be used to generate revenue or generate future income.
- It includes both tangible and intangible assets.
- Examples of assets include:
- Cash
- Accounts receivable
- Inventory
- Property
- Equipment
- Patents
In summary, capital is the money that a company or individual invests to acquire or build something of value, while assets are the resources that a company or individual owns that can be used to generate revenue or generate future income.