Home  Journals  International Accounting  28(274) - 2013 July

Multiplicity of interpretations of term "capital" and its essence from the point of view of accounting (financial accounting)

Available online: 28 July 2013

Subject Heading: PROBLEM. VIEWS. SOLUTIONS

JEL Classification: 

During the transformation of the economic system the processes of the international movement of capital take the important place, the creation of favorable conditions for capital accumulation, investment and rational allocation of capital in productive spheres. In the article the main aspects of the concept of capital and identified four approaches to the treatment of its essence are analyzed. It was concluded that in the accounting the capital is the foundation for the establishment of the enterprise, which is the source of assets and liabilities and provides continuous operation of enterprises and maximize profits. It is defined essence of concepts of equity and debt capital.

Keywords: capital, equity capital, debt capital, accounting

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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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