Capital Flashcards
1
Q
What is capital?
A
The amount a business owes its owners, to he whole quantity of assets less liabilities, owned by a business.
2
Q
What is working capital?
A
Current assets - current liabilities = working capital.
Calculates a company’s liquidity and operational efficiency.
(Current assets)
3
Q
What is share capital?
A
The owners money, the amount received from shareholders of the business.
4
Q
What is loan capital?
A
Money borrowed on long term basis (bank)
5
Q
What are reserves?
A
Also known as retained earnings, are portions of a business profit put aside to strengthen the businesses financial position.
