Similarities & Differences Between Capital And Assets
1. Capital is the amount of money invested in the business by Sole Proprietor or Partners in case of partnership business to start it or expand it. The amou nt invested either a Cash or Goods (Stock or Purchases) while Assets are the probable future economic benefits which are received by the business within one year or for a long period of time. 2. Capital is the internal resource of the business provided by owners of the business while assets are acquired as a results of capital. Any claim against the assets of the business are only due to the internal or external sources. 3. Capital is shown on Liabilities & Equity Side of Balance Sheet while assets are shown on asset side of balance sheet. 4. Capital is used to acquire assets while assets are used in the daily operations of the business and helps in generating profits for the business which is added to the capital of the business. 5. Capital is calculated from St...