Which term denotes the money that shareholders have invested in the business?

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

Answer: (A)

Capital on the balance sheet is the money shareholders have invested. This shows the owners’ funds or equity in the business—payments from shareholders plus any retained profits reinvested in the company. It represents the owners’ claim on the company after liabilities are accounted for.

Net assets equals assets minus liabilities, which is related but describes overall value, not specifically the funds invested by shareholders. Current liabilities are what the business owes short term, and net current assets or working capital is about short‑term liquidity, not owners’ investment.