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Capital account

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Noun

capital account

Definition: (economics) that part of the balance of payments recording a nation's outflow and inflow of financial securities

capital account

Definition: (finance) an account of the net value of a business at a specified date

Definition: An account in the net worth section of the balance sheet of an entity such as sole proprietorships and partnerships. In this context, the "capital account" (or, in cases of more than one owner, the "sum of all individual capital accounts") is the residual difference between total assets minus total liabilities, or the "net worth" of the entity. The term should not be confused with similar terms such as "working capital," "capital asset," "capital expenditure," and "capital lease."

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