What is capitol in accounting?

Answer by  richmiller3214 (138)

Capital in accounting is the difference between a business's assets and liabilities. Capital is the equity value of the business which includes physical assets, intangible assets, and net income minus all liabilities. If a business pays off all debts and the books still show that the company has a monetary value then it has capital.

Answer by  GilFinn (2065)

It is equity or the value of the investment in a company. Both can be used interchangibly. Refers to invested cash and/or the increase in equity.

Answer by  MoustacheLawyer (13)

A capitol is a seat of government. Perhaps you what you really mean is capital? Capital is wealth that can be used to acquire more wealth. In simple terms, capital is money.

Answer by  Godfather (116)

The common accounting equation is Assets = Liabilities - Capital. Assets are everything the business has. Liabilities are debts such as loans and taxes collected but not remitted. Think of them as claims others have on the business. Capital is the remainder of the assets, which the owners can claim.

Answer by  Darkephoenix (1789)

Capitol in accounting usually refers to the money invested by owners of a business. It includes all money put into the business in expectation of a full return of the investment.