Whats the difference between capital and assets?

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.

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