Introduction to finance Details

Question 1

Types of expenditure

Answer 1

-Capital expenditure
-Revenue expenditure

Question 2

Examples of fixed assets

Answer 2

-Land
-Buildings
-Machinery

Question 3

Capital is usually funded with long-term finance(T/F)

Answer 3

True

Question 4

Examples of capital expenditure

Answer 4

-Factories
-Delivery trucks
-Technology
-Production equipment

Question 5

Examples of revenue expenditure

Answer 5

-Utility bills(e.g. gas, electricity, water, etc.)
-Paying wages and salaries
-Paying suppliers
-Settling tax bills with the government
-Repayments of debts(e.g. mortgages, loans, etc.)