Even Investopedia is confused about this:
Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities. Additionally, capital includes facilities, such as the buildings used for the production and storage of the manufactured goods. Materials used and consumed as part of the manufacturing process do not qualify.
A financial asset is a tangible liquid asset that derives value because of a contractual claim of what it represents. Stocks, bonds, bank deposits and the like are all examples of financial assets. Unlike land, property, commodities or other tangible physical assets, financial assets do not necessarily have physical worth.
As I see it:
Economics: capital, as a factor of production, physical capital or PP&E
Finance: related to WACC: debt + equity
Finance: related to projects and personal finance: “money or equivalents as a deposit account with the bank”
I think I found the answer, was in reading 35. Talks about capital projects. So I guess capital in the reading 36 sense is referring to the purchase of assets that have a lifespan greater than 12 months?
EDIT: But I think you’re right capital is mentioned in economics in that flow of funds diagram (EDIT3: actually it’s called a factor market there), looks like I need to review this.
EDIT2: In accounting capital is known as equity and debt capital, so in accounting capital is just these two things. Similar to the meaning in Reading 36. i.e. capital is debt or equity funding of projects.
EDIT4: Reading 25 states that capital is composed equity and debt. So I think I’ll go with this.