What are assets, liabilities, capital

Assets are resources owned by a business that have economic value and are expected to provide future benefit. Examples include cash, accounts receivable, inventory, equipment, and buildings.

Liabilities are obligations of a business to transfer economic benefits to other entities in the future. They represent what a business owes to others. Examples include accounts payable, salaries payable, and loans payable.

Capital (also known as owner's equity or shareholders' equity) represents the residual interest in the assets of a business after deducting all its liabilities. It is the investment made by the owners in the business.