Money that the business has been invested in the business by shareholders.

• A. Current Assets
• B. Net Assets
• C. Net Current Assets/Working Capital
• D. Capital (balance sheets)

Answer: (D)

Capital is the money shareholders invest in the business, and it sits in the equity section of the balance sheet as shareholders’ funds. This reflects funds provided by owners to finance the business, not the assets the business uses or its liquidity. Current assets are items the business expects to convert to cash within a year (like cash or stock), so they’re resources, not funding sources. Net current assets (working capital) is the difference between current assets and current liabilities, a measure of short‑term liquidity, not the source of investment. Net assets show the overall value after liabilities, but they don’t specify who invested the money. So the term that directly describes funds put in by shareholders is capital.