Expenditure Flashcards
1
Q
Define expenditure.
A
All the money that a business has to spend.
2
Q
What are the two type of expenditure?
A
capital and revenue
3
Q
What is capital expenditure?
A
- money spent on assets that will be used by the business for a long time.
4
Q
Example of capital expenditure:
A
buying a fixed asset like machinery
5
Q
What is revenue expenditure?
A
money spent on a businesses day-to-day costs
6
Q
Examples of revenue expenditure:
A
- Staff wages
- Rent
- Utility bills
7
Q
Define overheads
A
everyday running costs of a business.
- need to be paid even if nothing is produced.
8
Q
Examples of overheads:
A
rent and electricity bills
