are inventory and capital the same in accountin?

Question

please help me coz i really need 2 know...if u give me a gud answer i'll gifve u da best answer tumb

Answer 1

No they are not. Inventory is what you have on hand to sell:
A complete listing of merchandise or stock on hand, work in progress, raw materials, finished goods on hand, etc., made each year by a business concer
Capital is:
a. assets remaining after deduction of liabilities; the net worth of a business.
b. the ownership interest in a business.

Hope this helps.

Answer 2

Inventory and capital are both good to have, but are on opposite sides of the accounting equation.
Inventory = the items held for sale in your business. They are assets to your company and will carry a debit balance.
Capital = makes up part of the net worth of an entity. The typical balance is a credit (meaning a company that has positive net worth). Other net worth accounts are Stock, Capital in excess of par, retained earnings, etc. Typically when someone is talking about the capital of a company they are referring to the retained earnings. Retained earnings are the profits of company that have been retained through the years; the higher the better. This account will also carry a credit balance.

Hope this helps.