capital account
"Capital account" can refer to different concepts in economics, accounting, and finance, each involving the tracking and management of assets and investments.
Definition
C1Macroeconomics
(technical, academic)A section of a country's balance of payments that records transactions involving the transfer of capital assets, such as investments and loans, between the country and the rest of the world.
Example
- A surplus in the capital account indicates more investment coming into the country than going out.
- The capital account balance is crucial for understanding a country's economic health.
B2Accounting
(technical, business)A ledger account that records the owners' invested capital and retained earnings, representing the financial assets a company can use.
Example
- The capital account shows the total contributions and earnings retained by the business.
- Each partner's capital account is adjusted annually based on their share of profits and losses.
C1Finance
(technical, banking)A type of bank account that holds funds for investment or financial purposes, often with restrictions on withdrawals.
Example
- The capital account is used to manage long-term investment funds.
- Restrictions on the capital account ensure funds are used for their intended purpose.
Similar
Terms that have similar or relatively close meanings to "capital account":
current accountpersonal capitalcapital equipmentcapital assetfinal accountcast accountson accountbalance of paymentstime account