Question

distinguish between physical and human capital

Answer 1

Physical Capital-

Physical capital consists of manmade goods that assist in the production process. Cash, real estate, equipment, and inventory are examples of physical capital. Physical capital values are listed in order of solvency on the balance sheet. The balance sheet provides an overview of the value of all physical and some non-physical assets. It also provides an overview of the capital raised to pay for those assets, which includes both physical and human capital.

Human Capital

Intangible assets are non-physical capital. A balance sheet only lists intangible assets when they have identifiable values. Intangible assets can't be touched, but they are often represented by a legal document or paper.