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Financial Management

Suresh Pai S (Tax Consultant) (1029 Points)

02 March 2017

What do you mean by capital Please?

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Annu (Chase your Dreams) (825 Points)
Replied 02 March 2017

Net worth of the business,that is, the amount by which it assets exceeds its liabilities

i.e., Capital = Assets - Liabilities

Annu (Chase your Dreams) (825 Points)
Replied 02 March 2017

Capital, in simple words, means funds that is required to run a business.

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 03 March 2017

typo. capital lease..

Sana Sultana Mussu (Student) (5119 Points)
Replied 03 March 2017

A capital lease is a lease in which the lessor only finances the lease, and all other rights of ownership transfer to the lessee, resulting in the recording of the asset as the lessee's property in its general ledger. The lessee can only record the interest portion of a capital lease payment as expense, as opposed to the amount of the entire lease payment in the case of a normal lease.

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