When assets equal to capital?

Assets equal capital when a company's total assets are financed entirely by its owner's equity, meaning there are no liabilities. This scenario typically occurs in a fully equity-funded business, where all resources and investments come from the owner's contributions. In such cases, the balance sheet reflects that assets are equal to capital, demonstrating financial stability and a lack of debt. However, this situation is rare in most businesses, as companies often leverage debt to finance growth.