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Is capital the amount of sales a business has? true or false?

User Andersh
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Answer:

false

Step-by-step explanation:

Capital refers to the resources or wealth used to start and maintain a business. It includes money and assets a business uses to produces other goods or offer services to its customers. Capital represents the owners' contribution to the business.

For an ongoing business, capital is calculated by subtracting liabilities from the assets. i.e., capital is equal to assets minus liabilities. Profits increase capital while losses decrease it.

Sales refer to money generated through a firm's trading activities. It is the money received from customers for goods sold or services rendered. Sales are often referred to as revenues.

User Ronica
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