European Cooperation (Feb 2017)
THE CAPITAL AS ECONOMIC AND ACCOUNTING CATEGORY
Abstract
The essence of economic capital has been revealed in the article. The analysis of existing theoretical provisions in the interpretation of the category “capital” has been done that made it possible to identify strengths and weaknesses of its interpretation in the course of its evolutionary development. Having reviewed the evolution of the economists’ views on the interpretation of the category “capital”, the diversity of this category have been found out. The variety of statements about the nature of capital made by the representatives of different economic schools and directions is the proof of it. However, such variety is due to the time frames, corresponding economic conditions, existing business relationships, the level of economic development and society in general. Thus, the opinions on capital at every stage of development of economic idea were different, but they are united in one thing: capital is associated with the ability to generate an income.The main fungible components of equity have been pointed out that made it possible to form the author’s point of view on the researched categories for accounting purposes as assets of the company used for its expanded reproduction for getting profit, estimated at real (fair) value on the reporting date.It has been found out that the name of the first section of the liabilities balance does not match its content. It is advisable to call the first section of the liabilities balance as "The Own Sources".
