Which term describes wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.

• A. Net income
• B. Income Statement
• C. Balance Sheet
• D. Capital

Answer: (D)

Capital is the wealth in cash or other assets that a person or organization can use or contribute for a purpose, such as starting a company or investing. It represents the resources available to deploy toward growth, including money on hand, investments, equipment, real estate, or funds raised from investors. This is different from net income, which is profit earned over a period; and from the income statement, which shows revenues and expenses to determine profitability. The balance sheet shows what is owned and owed at a single point in time, a snapshot of financial position. Capital, in contrast, describes the actual resources you can mobilize for opportunities and investments.