29.2 Working Capital

Question 1

Current assets

Answer 1

Assets that are either cash or likely to be turned into cash within 12 months.

Question 2

Current liabilities

Answer 2

Debts that usually have to be paid within one year.

Question 3

Capital expenditure

Answer 3

The purchase of non-current assets that are expected to last for more than one year, such as buildings and machinery.

Question 4

Revenue expenditure

Answer 4

Spending on all costs and assets other than non-current assets, which includes wages, salaries, and inventory of material.