The definition of «capital» as an economic and accounting category

Azov-Black Sea Engineering Institute, Don State Agrarian University, 21, Lenina str., 347740, Zernograd, Russia

^* Corresponding author: butkova_ov@inbox.ru

Abstract

The definition of «capital» has attracted and continues to attract the attention of researchers of the international scientific community, since any economic entity revolving in the economic space should possess certain capital and be clearly aware of what goals it needs to be invested at a specific point in time. With the advancement of science new economic categories have appeared, which are integral part of the conceptual definition of «capital». In this regard, due to the novelty of some components of the capital for the Russian economy, differences arise in the interpretation of the concept and, as a result, its incorrect use in the practical activities of Russian economic entities. Through research there has been revealed that the term content of the definition of «capital» as an economic and accounting category has been changing along with the evolutionary process of economic knowledge. The article systematizes the views on the concept of «capital» from the perspective of economic theory and accounting. The relationship between the components of the definition of «capital» is highlighted. Author’s definitions of the componentsof «capital» within the system of the accounting and analytical system of an economic entity are proposed.