What is the capital source?

capital sources are understood to include assets that are used in the process of producing goods or services within a business operation. Although the range of assets that can be included in this category is very wide, it is important to realize that not all assets are capital resources. There are several basic qualifications that control what the assets can correctly indicate this term.

One of the basic criteria for the asset to be considered a capital source concerns the long -term use of the asset in the production of goods and services. It is generally expected to help create products for a longer period of time. Production machines are an excellent example, as well as a supporting device that is used to keep the machine in good operating condition. In fact, the building in which the machinery is located will also qualify as a capital source.

This type of source can also be defined as something that helps in storing cash, waiting for sale and transporting a nailZnikin. For this reason, the warehouse will be considered a capital source, especially if the manufacturer owns space. Supporting structures can also be included to help the strength or strength needed to control the machines used in production. The dams that help create energy for factory operation also meet the basic criteria.

One of the important assets that is not usually considered to be a capital source is cold hard cash. Money, almost in any form, cannot be considered part of this category. This is because the currency is a medium that allows you to acquire a capital source rather than being a source. Although the money is necessary for the function of any business, the currency does not directly lead to the production of goods and services. In addition, money cannot be used to ensure force or force for machinery that actually produces finished products.