Is capital fixed asset

Accounting

ScanSolve AI Answer

Answer

No, capital is not a fixed asset.

Capital refers to the funds invested in a business by its owners (owner's equity) or the total financial resources available to a business. It represents the source of funding.

A fixed asset (also known as a non-current asset) is a long-term tangible asset that a business owns and uses to generate income, such as land, buildings, machinery, or vehicles. It is an item purchased with capital or other funds.

Therefore, capital is used to acquire assets, including fixed assets, but it is not an asset itself.

Was this helpful?

Still stuck on this one?

Ask a follow-up, and the answer starts from this question.

Got a different question?Ask your own question
Handwritten step-by-step solution preview

Handwritten Step-by-Step Solution

Get this as a handwritten image on WhatsApp — like a tutor wrote it for you.

Try on WhatsApp