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Capital account
Meaning
Noun
●
In Accounting:
An
account
in the
net worth
section
of the
balance sheet
of an
entity
such as
sole proprietorships
and
partnerships
. In this
context
, the "
capital account
" (or, in
cases
of more than one
owner
, the "sum
of all
individual
capital accounts
") is the
residual
difference
between total
asset
s
minus
total
liabilities
, or the "
net worth
" of the
entity
. The
term
should not be
confused
with
similar
term
s such as "
working capital
," "
capital asset
," "
capital expenditure
," and "capital lease."
●
In
corporations
"capital
stock accounts
" are
roughly
equivalent
to
capital accounts
except
corporations
may include other
capital accounts
such as "
retained earnings
" which are not
individually
owned
by the shareholders.
●
In Economics:
An
account
that
records
all
transactions
between
domestic
and
foreign
residents
that
involve
a change of
ownership
of an
asset
. It is the
net
result of public and
private
international
investment
flowing
in and out
of a country.
Sourced from
Wiktionary
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