Current Assets
Current assets are assets that can quickly be converted to cash.Accounts Receivable | Cash |
Inventory | Marketable Securities |
Prepaid Expenses | Supplies |
Tangible Assets
Capital that physically exists. Often referred to as fixed assets or property, plant & equipment (PP&E).Commercial Buildings | Computers |
Data Centers | Equipment |
Facilities | Factories |
Furniture | Infrastructure |
Land | Machines |
Office Buildings | Robots |
Vehicles |
Intangible Assets
Productive assets that have no physical presence. These are difficult to value and often do not appear in the financial statements of firms. The value of intangible assets can be used to explain the difference between the book value of a firm and its market capitalization.Brands | Contractual Rights |
Data | Goodwill |
Human Capital | Intellectual Property |
Knowledge | Relational Capital |
Software | Trade Secrets |
Financial Capital
From a finance perspective, the capital of a business is broken into three categories according to its source and liquidity:
Equity Capital
Equity capital is cash paid into a business by investors. This is often the primary type of funding for a business.
Debt Capital
Capital that has been raised as a debt to creditors.
Working Capital
Working capital is current assets minus current liabilities. This is a measure of the liquidity of a firm.
| Overview: Business Capital | ||
Type | ||
Definition | Assets under the control of a business that can be reasonably expected to produce future revenue. | |
Related Concepts | ||
