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or as liability or equity or not included?

2007-02-14 09:30:35 · 5 answers · asked by Pluto 3 in Business & Finance Investing

5 answers

Capital is a term used in Partnerships. For Corporations it is called as Stockholders Equity. Both are projected at the Liability section of the Balance sheet. In case you need the accounting equation is,
Assets = Liabilities + stock holders equity.
Assets are on the debit side and the right hand side is on the credit side or the liability side. Debit side is the Asset or left hand side of the equation.

2007-02-14 15:10:21 · answer #1 · answered by Mathew C 5 · 0 0

If it is in the form of cash, sitting in a bank account, then it is an asset. But where did it come from? A lot of the time there will be some sort of offsetting liability depending on the source of funds (a loan, paid in capital, etc).

2007-02-14 09:42:13 · answer #2 · answered by Pugsly 2 · 0 0

just a formula to use to find liquidity of the assets and liabilities, working capital is alway include in the balance sheet. working capital = current asset - current liabilities

2016-05-23 23:27:36 · answer #3 · answered by Anonymous · 0 0

"Capital", in the context of the other terms you have mentioned, is usually used in place of "equity" when presenting the balance sheet of a single owner or a partnership, whereas "equity" is most often used in the balance sheet of a corporation.

2007-02-14 09:52:37 · answer #4 · answered by Joseph K 1 · 1 0

By Capitol, I believe you mean Property, Plant & Equipment. Property, Plant and Equipment is a long-term asset. It is amortized, i.e., deducted from earnings over a certain number of years, until the value is zero.


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2007-02-14 09:41:17 · answer #5 · answered by Bayou Brigadier 3 · 0 0

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