Capital assets are long-term investments held by a company or individual with the expectation of generating income or appreciation over time. These assets are typically acquired with the intention of holding them for a year or more. Capital assets can include real estate, stocks, bonds, equipment, and intellectual property. Unlike current assets, which are expected to be converted into cash within a year, capital assets are intended to be held for a longer period to produce income, or generate value through price appreciation. The value of capital assets can change over time due to market conditions, economic factors, and other external forces. Proper management of capital assets is important for achieving financial stability and growth over the long term.

Capital assets refer to long-term assets held by individuals or businesses for investment purposes or to generate income. These assets typically include real estate, stocks, bonds, and machinery. Capital assets are expected to provide benefits to the owner over an extended period, usually more than one year. They are distinguished from inventory or assets held for resale in the ordinary course of business. Capital assets may appreciate in value over time, generating capital gains when sold. They play a crucial role in wealth accumulation, portfolio diversification, and long-term financial planning for both individuals and organizations.