... up or is to be set up and start trading, then it needs resources, such as capital. The accounting equation is shortened with the following formula; Assets = Capital + Liabilities I will now explain each of the terms involved in the formula. Capital There are three meanings/definitions usually associated with this accountancy term. The first definition states that Capital represents the amount of money invested/resources supplied by the owner(s) in the business. The second meaning given to capital states; that Capital represents the amount of money owed by the business to the owner(s). The next definition may help when understanding the worth ability of CRH, it states; Capital is a current estimation of the business/firm/company's overall value/worth as is sometimes refereed to as Net Worth, for example if a business had €1000 worth of assets and €300 in liabilities, then its overall net worth would be €700. In relation to CRH, if ...

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