what is the meaning and difference between capital and circulated capital .
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Quick Summary
This discussion clarifies the distinction between capital and circulating capital. Capital refers to the overall financial worth of a business, which can become negative if expenses exceed income and profits. Circulating capital, on the other hand, is the liquid capital actively used in a company's day-to-day operations, encompassing assets like cash, inventory, and accounts receivable.
Difference capital is negative capital whereas Circulating capital is money being used for core operations of a company. Circulating capital includes cash, operating expenses, raw materials, inventory in process, finished goods inventory, and accounts receivable