Capital Account definition: Copy, customize, and use instantly
Introduction
The term "Capital Account" refers to a financial account used to track the equity or financial interest of an individual or entity in a partnership, corporation, or other business structures. This account typically records capital contributions, distributions, and changes in equity.
Below are the examples illustrate how "Capital Account" can be defined in various contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Capital Account" as related to partnership contributions
This definition ties "Capital Account" to a partnership structure.
"Capital Account" means the account maintained for each partner to record their capital contributions, share of income or loss, and any distributions made to them in accordance with the partnership agreement.
Definition of "Capital Account" as a financial equity tracker
This definition links "Capital Account" to equity tracking.
"Capital Account" refers to the account that records an investor’s or partner’s equity interest in a business, including initial contributions, additional investments, and distributions.
Definition of "Capital Account" as used in LLC structures
This definition connects "Capital Account" to Limited Liability Companies (LLCs).
"Capital Account" means the individual account for each member of an LLC, used to track their capital contributions, share of profits and losses, and any withdrawals or distributions.
Definition of "Capital Account" as used for tax purposes
This definition ties "Capital Account" to tax regulations.
"Capital Account" refers to the record of contributions, earnings, and distributions used to determine a partner's or shareholder's basis in a business for tax reporting and compliance.
Definition of "Capital Account" in relation to shareholder equity
This definition applies "Capital Account" to shareholder interest.
"Capital Account" means the amount of equity owned by a shareholder, reflecting their initial investment, any additional contributions, and their proportionate share of the company’s profits and losses.
Definition of "Capital Account" as part of partnership dissolution
This definition links "Capital Account" to dissolution procedures.
"Capital Account" refers to the account maintained for each partner, reflecting their contributions, share of profits or losses, and any outstanding balances during the process of partnership dissolution.
Definition of "Capital Account" as relevant to distributions
This definition connects "Capital Account" to distribution calculations.
"Capital Account" refers to the account used to track the amount of capital each partner has contributed to the business, affecting the distribution of profits or losses in accordance with the agreement.
Definition of "Capital Account" as related to income and loss allocation
This definition ties "Capital Account" to allocation of financial results.
"Capital Account" means the account used to allocate each partner’s share of the income, losses, and other financial transactions in a partnership or business entity.
Definition of "Capital Account" as a mechanism for tracking ownership interests
This definition links "Capital Account" to tracking ownership shares.
"Capital Account" refers to the financial record that tracks the ownership interest of each partner, member, or shareholder in the business, reflecting all changes in ownership over time.
Definition of "Capital Account" as applicable in limited partnerships
This definition applies "Capital Account" to limited partnership agreements.
"Capital Account" refers to the account of each limited partner, reflecting their contributions, share of profits and losses, and any distributions or withdrawals as per the partnership agreement.
Definition of "Capital Account" as related to profit-sharing
This definition ties "Capital Account" to profit allocation.
"Capital Account" means the account for each partner or member that is used to determine their share of the profits or losses generated by the business, as agreed upon in the partnership or operating agreement.
Definition of "Capital Account" in the context of joint ventures
This definition connects "Capital Account" to joint ventures.
"Capital Account" refers to the account maintained by each party in a joint venture, reflecting their capital contributions, their share of profits or losses, and any distributions received from the venture.
Definition of "Capital Account" as related to capital contributions
This definition ties "Capital Account" to contributions of capital.
"Capital Account" means the account used to track each partner’s or member’s initial and subsequent contributions of capital to the business, along with any changes in their financial interest.
Definition of "Capital Account" as a component in corporate finance
This definition applies "Capital Account" to corporate finance operations.
"Capital Account" refers to the section of the company’s financial records that tracks the contributions and equity of shareholders, used to determine ownership and dividends.
Definition of "Capital Account" as a determinant of liquidation preferences
This definition connects "Capital Account" to liquidation events.
"Capital Account" refers to the account that tracks the value of each partner’s or member’s equity, which may be relevant in determining liquidation preferences or distributions upon dissolution of the entity.
Definition of "Capital Account" in relation to financial reports
This definition links "Capital Account" to financial reporting.
"Capital Account" means the portion of the financial reports that reflects the capital balance for each partner or shareholder, used for internal financial analysis and reporting purposes.
Definition of "Capital Account" as a measure for buyout scenarios
This definition ties "Capital Account" to buyout situations.
"Capital Account" refers to the financial account used to calculate a partner’s or shareholder’s value in the event of a buyout or acquisition of their interest in the business.
Definition of "Capital Account" as related to exit strategies
This definition applies "Capital Account" to business exit planning.
"Capital Account" means the account used to track the financial interest of each owner, relevant for calculating exit payouts or determining the distribution of assets upon an exit event.
Definition of "Capital Account" in relation to capital withdrawals
This definition links "Capital Account" to withdrawals.
"Capital Account" refers to the financial record of an individual’s contributions and withdrawals from the business, with withdrawals reducing the balance of the capital account.
Definition of "Capital Account" as linked to investor equity
This definition ties "Capital Account" to investor involvement.
"Capital Account" means the financial account for each investor, reflecting their equity stake in the business, based on initial investments, retained earnings, and distributions.
Definition of "Capital Account" in the context of general partnerships
This definition connects "Capital Account" to general partnerships.
"Capital Account" refers to the account used to track each general partner’s contributions, share of profits and losses, and any distributions as stipulated in the partnership agreement.
Definition of "Capital Account" as used in venture capital arrangements
This definition links "Capital Account" to venture capital.
"Capital Account" means the account used to track the contributions and distributions of capital in a venture capital arrangement, affecting the equity distribution among investors.
Definition of "Capital Account" in the context of profit allocation rules
This definition ties "Capital Account" to profit-sharing rules.
"Capital Account" refers to the account used to track each partner’s share of profits and losses based on the rules outlined in the partnership agreement, and to allocate funds accordingly.
Definition of "Capital Account" as an indicator of business ownership
This definition links "Capital Account" to ownership interest.
"Capital Account" means the financial account that records the contributions and ownership interests of each business partner or shareholder, indicating their financial stake in the entity.
Definition of "Capital Account" in relation to shareholder distributions
This definition applies "Capital Account" to shareholder payouts.
"Capital Account" refers to the record maintained for each shareholder to track the capital invested, income allocated, and distributions made from the business.
Definition of "Capital Account" as part of corporate restructuring
This definition connects "Capital Account" to restructuring efforts.
"Capital Account" means the financial account used to adjust ownership stakes and capital contributions during a corporate restructuring or reorganization.
Definition of "Capital Account" as related to profit reinvestment
This definition ties "Capital Account" to reinvestment strategies.
"Capital Account" refers to the record of each investor’s capital contributions and their share of profits, which can be reinvested into the business to increase their equity interest.
Definition of "Capital Account" as part of asset distribution
This definition links "Capital Account" to asset distribution.
"Capital Account" means the account that records each shareholder’s or partner’s share of the company’s assets, relevant for determining distributions in the event of liquidation or dissolution.
Definition of "Capital Account" as an equity-related metric
This definition ties "Capital Account" to financial equity metrics.
"Capital Account" refers to the account used to track the equity position of each partner, member, or shareholder in the business, serving as an important metric for assessing ownership stakes.
Definition of "Capital Account" as linked to management rights
This definition connects "Capital Account" to management influence.
"Capital Account" means the account reflecting the equity interests of business owners, which may influence their rights in management decisions and governance structures.
Definition of "Capital Account" in relation to tax laws
This definition applies "Capital Account" to tax compliance.
"Capital Account" refers to the record of an individual’s capital contributions and share of profits and losses, used to determine tax liabilities and to report financial information to tax authorities.
Definition of "Capital Account" as part of an operating agreement
This definition ties "Capital Account" to an operating agreement.
"Capital Account" means the account maintained by each member or partner to track contributions, share of profits and losses, and distributions, as outlined in the operating agreement.
Definition of "Capital Account" in connection with capital gains
This definition links "Capital Account" to capital gain calculations.
"Capital Account" refers to the account used to track the capital invested and any gains or losses realized by the investor, affecting the calculation of capital gains for tax purposes.
Definition of "Capital Account" as part of a business’s financial structure
This definition ties "Capital Account" to overall financial structure.
"Capital Account" means the portion of the company’s financial structure that represents the equity capital invested by shareholders or partners, used to evaluate the company’s financial health and ownership distribution.
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