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edd
edd asked in Business & FinanceInvesting · 5 months ago

I don’t understand the difference between asset and capital ?

2 Answers

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  • D.E.B.S.
    Lv 7
    5 months ago

    Capital is equal to total assets minus total liabilities.

    An asset is a long term tangible piece of property.  Liabilities are amounts you owe.  

  • Jim
    Lv 7
    5 months ago

    An asset is like owning a machine.

    Capital is money in the bank.

    They might both be worth the same, but capital is instantly available.

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