capital account
- noun
- /ˈkæpɪtəl əˈkaʊnt/
- Specialized
:
cuenta de capital
- Each Mondragon worker-owner holds one share of voting stock, and profits are distributed in the form of additions to a capital account on which 6 percent interest is paid annually.
Examples
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The problem of capitalization can be mitigated to some extent by instituting internal capital accounts, such as Mondragon's retirement accounts, which facilitate reinvestment of savings and enable worker-owners to plan for the long term.
Academic text (1995) -
The increase in the business's net worth was reflected in the amount shown in the capital account at the end of the fiscal year.
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You see, we lease this back from the company we sold it to; that way it comes under the monthly current budget and not the capital account.
Blog text (7) -
It also includes China, which is opening its capital account and liberalizing its financial system.
Blog text (5) -
When worker-owners retire or leave the company, they relinquish their ownership share, and the value of their capital account is returned to them as their equity stake in the company.
Blog text (10) -
Because the network's worker-owners cannot withdraw money from their capital accounts until they retire, Mondragon is able to make long-term investments in expansion, diversification, research and development, and reinvestment from its accumulated capital stock.
Academic text (1995) -
When calculating my taxes, I need to provide details on my capital account to show the owner's equity.
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Understanding the capital account can help investors assess the financial health of a company.
How Large
- Specialized
- Specialized
- Specialized
Surface Forms
Morphology
The phrase is a straightforward noun–noun compound: an 'account' (a record) relating to 'capital' (funds/assets). A B1 learner who knows both constituents can infer it denotes the record or ledger for capital flows, even if they lack detailed economic knowledge, so the composition is transparent.
Etymology
Capital account comes from the simple image of a business record book where capital, the owner's money or assets, is kept as an account, a written record. So this record shows the owner's investments and withdrawals and therefore the business 'net worth' on a specific date.
