Expenditures

Question 1

What is revenue expenditure?

Answer 1

Short-term expenses used in the current period or within a year. Includes the expenses required to meet the ongoing operational costs of running a business.

Question 2

Examples of revenue expenditure:

Answer 2

• Salaries and employee wages.
• Research and development.
• Utilities and rent.
• Business travel.
• Property taxes.

Question 3

What is capital expenditure?

Answer 3

Consists of the purchases of long-term assets to help maintain or expand it’s business’s and generate additional profits.

Question 4

Examples of capital expenditure:

Answer 4

• A facility or factory.
• Vehicles (trucks for delivery).
• Manufacturing equipment.
• Computers.
• Furniture.

Question 5

What is profit?

Answer 5

A companies total earnings.

Question 6

What is capital maintenance?

Answer 6

Company’s income after fully recovering costs or capital has been maintained.