Non-technical and Ambiguous Usage
A well-known financial accounting textbook advises that the term be avoided except in tax accounting because it is used in so many different senses, not all of them well-defined. For example it is often used as a synonym for fixed assets or for investments in securities.
A common non-technical usage occurs when people ask that employees or the environment or something else be treated as a capital asset. In this context it means something managers have a responsibility to maintain, and to report changes in value as gains or losses.
Capital assets should not be confused with the capital a financial institution is required to hold. This capital is computed from the right-hand side of the balance sheet while assets are found on the left-hand side.
Read more about this topic: Capital Asset
Famous quotes containing the words ambiguous and/or usage:
“The whole of natural theology ... resolves itself into one simple, though somewhat ambiguous proposition, That the cause or causes of order in the universe probably bear some remote analogy to human intelligence.”
—David Hume (1711–1776)
“I am using it [the word ‘perceive’] here in such a way that to say of an object that it is perceived does not entail saying that it exists in any sense at all. And this is a perfectly correct and familiar usage of the word.”
—A.J. (Alfred Jules)