glossary

Capital

Capital refers to the funds invested in a business by its owners or raised for long-term use in operations and growth. It may include owner’s contribution, share capital, or retained earnings used to support the business. Capital is important because it forms the financial base on which the business operates and expands.

Related Items

Current Ratio

The current ratio measures a company’s ability to meet its short-term obligations using its short-term assets. It is calculated by dividing current assets by...

Current Liabilities

Current liabilities are obligations that must be paid within one year or within the normal operating cycle. Examples include accounts payable, short-term loans, accrued...

Current Assets

Current assets are assets expected to be converted into cash, sold, or used within one year or within the normal operating cycle of the...

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