I want to know what is capital and its types?what is working capital,contributed capital?

April 14, 2011 by Cash Flow Tips  
Filed under More Cash Flow Answers

Can you answer angelangel’s question about Cash Flow?:

i study the balance sheet, and i cant got what is meant by Capital? is that the money i started the business with?is that mean it was only cash and i spent it all?or its not only cash? is the retained earning is working capital ?im realy confused…i need help plz

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One Response to “I want to know what is capital and its types?what is working capital,contributed capital?”

  1. cremedelacreme04 on April 17th, 2011 11:38 am

    Cash Flow Feedback: In finance and accounting, capital generally refers to financial wealth especially used to start or maintain a business. Specifically, in accounting it refers to “The remaining assets of a business after all liabilities have been deducted; net worth.”

    Working capital reflects liquid assets and is defined as current assets minus current liabilities.

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