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4 votes
Can some one help me. Asset capital and liability please

User BigSandwich
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1 Answer

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18 votes

Answer:

I hope this helps you.

Explanation:

Assets are the economic resources belonging to a business. Assets could be money in a cash register or bank account, or items such as property, fixtures and furniture, equipment, motor vehicles, and stock or goods for resale. An important asset in businesses which sell goods or services on credit is money owed to the enterprise by customers. This asset is known as debtors.

Capital is the value of the investment in the business by the owner(s). It is that part of the business that belongs to the owner; hence it is often described as the owner’s interest.

Liabilities are the debts owed by the firm. The main types of liabilities are creditors (money owed by the business to suppliers of goods and services), bank overdrafts and bank loans.

User Johnnycakes
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