The Importance Of Capital
- Topics:
- Working Capital
- Tags:
- Accounting,
- Articlesisland.com,
- Capital Asset,
- Finance,
- Financial Services,
- Operational Accounting
- Source:
- Articlesisland.com
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Overview: In general, capital is a term used to define resources used to make money. Basically, you use capital to make something else. If you are interested in economics, there is a lot to learn about the concept of capital as an input into the production process. But this paper is talking about accounting and finance for your small business, so it leans towards the accounting interpretation of fixed capital. In practical accounting terms, you can think of fixed capital as fixed assets. The fixed capital assets are used to make something which is then sold for revenue. This is how you convert your capital to cash.
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Format: HTML | Date: Oct 2006 | Pages: 6
