Can anyone define: assets, liabilities, expenses and capital?
Assets relate to all property, goods, staff, stock etc held by a company. They have a monetary value, either the cost paid, wage paid or resale value. Liabilities include money you owe, tax you have to pay Expenses include all items not already covered under Assets. These might be travel/petrol costs, meals, expenses claimed by staff Capital is the amount of money invested into a company, ie share capital, It also covers savings, this is not related to cash flow in any way. Cash flow is the amount of money you have coming into your company, the money that can be drawn upon to pay your staff or creditors, when purchasing stock, you increase you assets, when paying staff you increase your assets Hope this helps, I am not an expert and accountancy is like some weird other world to me, but I run my own company so I have had to glean some knowledge.
