Anonymous asked in Business & FinanceOther - Business & Finance · 1 month ago

What is an asset versus what is capital? How I understand asset is anything that can be sold for money I think this is probably wrong ?

1 Answer

  • Amy
    Lv 7
    1 month ago
    Favorite Answer

    An asset is anything valuable. If you're trying to add up your assets vs liabilities, you can only put a dollar value on the ones that can be sold. But intangible things like a brand name's reputation are also assets.

    Capital is assets that can be used to generate more money.  It mostly refers to money that is available to invest. A business's capital includes factories and equipment.

    The house you live in is an asset, but a house you rent out is capital.

Still have questions? Get your answers by asking now.