what is the difference between Capital and Assets ?

Question

i want to know in terms of bussiness or economics

Answer 1

Capital is money that you have in the bank and assets are goods or property owned by you !

Answer 2

Capital is the money invested in a business and is therefore a liability as in theory it needs to be paid back at some time in the future. An asset is something he business owns in terms of Land & Buildings, equipment, cars, vans etc, Cash, stock, work in progress etc that can be converted into a liquid form (cash) to repay the liabilities of a business, or are necessary for the good workings of the business... such as machinery
Many businesses have very underatted assets.. priceless they are... Employees and customers, cannot be valued on any balance sheet but without them you wouldn't have a business

Answer 3

it depends on the situation.

most peoples answers about capital being money are only accurate in one sense.

in the true sense of the word capital is the money it takes to set up the business. so when you buy a machine it is a capital purchase.
as opposed to the costs of buying consumables etc. which are expenses.

an asset is anything the business (or person) owns that could be realised to pay debts.
so the machine you bought as a capital expenditure is an asset because it could be sold to produce money.

Money itself is an asset, it is refferred to as a liquid asset because it is very easy to realise the full value of money, its harder to realise the full value of a machine.

Answer 4

Assets: economic resources controlled by an entity as a result of past transactions or events and from which future economic benefits may be obtained.

They have three essential characteristics:

* They embody a future benefit that involves a capacity, singly or in combination with other assets, in the case of profit oriented enterprises, to contribute directly or indirectly to future net cash flows, and, in the case of not-for-profit organizations, to provide services;

* The entity can control access to the benefit; and,

* The transaction or event giving rise to the entity's right to, or control of, the benefit has already occurred.

Capital: in classical economics, capital is one of three factors of production, the others being land and labor. Goods with the following features are capital:

* It can be used in the production of other goods (this is what makes it a factor of production).

* It is human-made, in contrast to "land," which refers to naturally occurring resources such as geographical locations and minerals.

* It is not used up immediately in the process of production, unlike raw materials or intermediate goods.

Answer 5

Capital is money invested into business.
Assets, part of the investment, are owned by the organization for effective running of the business.

Answer 6

Simplest answer:

Capital: Money the company has.
Assets: Property the company owns.

Answer 7

Liquidity.

Answer 8

accounting 101

says. capital is cash

asset is Equipment