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It's neither. It's part of the equity on the balance sheet. Although it does have similar proprties to liabilities.

P.S. - Please also see: What are the three main kinds of capital?

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14y ago

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Related Questions

What is the formula for finding liabilities?

Assets - Capital = Liabilities


If total assets are 30000 and total liabilities are 18000 capital must equal?

To find the capital (or equity), you can use the accounting equation: Assets = Liabilities + Capital. Rearranging this gives us Capital = Assets - Liabilities. Therefore, if total assets are 30,000 and total liabilities are 18,000, capital must equal 30,000 - 18,000, which is 12,000.


For the following circumstances calculate the missing figure Owners Equity 100000 Liabilities 20000 Assets?

Assets= Capital+Liabilities So Assets=? Capital=100000 Liabilities=20000 Then Assets=100000-20000= 80000/-


How do you determine assets when given liabilities?

assets are equal to liabilities (if you exclude capital, if however you are given the capital figure you have two options 1, add it to the liabilities figure OR 2, subtract it from the assets figure)


Why Liability equals Assets - Owners Equity?

Because Assets equal to Liabilities plus Capital: ASSETS= LIABILITIES + CAPITAL This is a Mathematical equation, try to figure it out by your own.


What is a basic accounting equation?

Single proprietorship assets= liabilities + capital partnership assets= liabilities + partner's equity corporation assets= liabilities + shareholder's equity


Capital Employed is equal to?

Capital Employed = Fixed assets + current assets - current Liabilities


How do you determine the working capital of a business?

Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)


How can one calculate the working capital ratio?

One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.


What is the accounting equation and how does it work?

The accounting equation displays the relationship between capital, liabilities and the assets. The accounting equation shows that the assets are a sum of the liabilities and the invested capital.


Working capital formula?

The formula for calculating working capital is: Working Capital = Current Assets - Current Liabilities. It represents a company's ability to cover its short-term obligations with its current assets. A positive working capital indicates that a company has enough assets to cover its liabilities, while a negative working capital may suggest liquidity issues.


Does Capital equals assets plus liabilities is this true or false?

This would be False:The GAAP account equation is Assets = Liabilities + Owners Equity (which includes capital)Therefore the correct equation would be:Assets - Liabilities = Owners Equity (minus not plus)There is no accounting equation that allows to adding assets and liabilities.