Capital asset

Imagine you have a special toy that you really love, like a teddy bear or a cool remote-controlled car. This special toy is your capital asset.

A capital asset is something that you own and can use to make more money. Just like your special toy can bring you happiness or make you feel proud, a capital asset can bring a business or a person more money.

For example, if you have a big piece of land, like a farm, that you can grow and sell crops on, that land is your capital asset. It can help you make money by selling the fruits or vegetables you grow on it.

Another example of a capital asset is a building that people can use to do business, like an office or a store. When people pay rent to use the building, it helps the owner make money.

So, a capital asset is something valuable that you own, and it can help you make more money. Just like you take care of your special toy so it doesn't get broken, people and businesses also take care of their capital assets to make sure they can keep using them to make money.