What is capital?

Capital

Capital is the financial resources a business uses to fund its operations, investments, and growth. Capital can come from owners, investors, lenders, or profits retained within the business.

Example: A business raises $100,000 from investors to purchase equipment and expand into a new market.

Related terms: Equity, Assets, Working Capital

← Back to Accounting Glossary

Switch to Digits today

Experience accounting, reimagined.