Capital Asset

A type of asset that is not easily sold that is important to the business operations of the company. For example, plant, property and equipment would be considered a capital asset of a company. They are usually  not sold(and not easily sold) unless the company is in urgent need of cash or is undergoing liquidation.

Capital assets may not sell for their worth on the balance sheet. When Buffett liquidated the textile operations of Berkshire Hathaway, looms that were bought for $5000(and recorded as such on the balance sheet) were being sold for $25— less than it would take to haul to the dump.