Definition of Capital account:
Economics: That part of balance of payments which records net changes in a countrys international financial assets and liabilities.
The capital account, in international macroeconomics, is the part of the balance of payments which records all transactions made between entities in one country with entities in the rest of the world. These transactions consist of imports and exports of goods, services, capital, and as transfer payments such as foreign aid and remittances. The balance of payments is composed of a capital account and a current account—though a narrower definition breaks down the capital account into a financial account and a capital account. The capital account measures the changes in national ownership of assets, whereas the current account measures the country's net income.
In accounting, the capital account shows the net worth of a business at a specific point in time. It is also known as owner's equity for a sole proprietorship or shareholders' equity for a corporation, and it is reported in the bottom section of the balance sheet.
Company accounts: General ledger account showing owners investment plus net income from the firms operations, less net losses (if any) from operations, less withdrawals of funds by the owner(s) for personal use.
An account recording capital expenditure, or the amount of capital held by a business, country, etc.; (also) part of a nations balance-of-payments recording the outflow and inflow of financial securities.
How to use Capital account in a sentence?
- The capital account's balance will inform economists whether the country is a net importer or net exporter of capital.
- The capital account keeps track of the net change in a nation's assets and liabilities during a year.
- The capital account was the only account the analyst referenced in explaining the investment return numbers to the staff today.
- I was in charge of looking after the capital account which was great because I had always wanted an important job.
- The capital account, on a national level, represents the balance of payments for a country.
- You need to try and keep enough liquidity in your capital account to take advantage of a good deal when it is available.
Meaning of Capital account & Capital account Definition