Revenue Expenditure - Definitions Flashcards

1
Q

Bank charges

A

Payments made to a bank to have certain types of bank accounts or as fines for activity such as going over an overdraft limit

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2
Q

Capital expenditure

A

Spending on long term assets

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3
Q

Capital income

A

Loans, mortgages, shares, owner’s capital and debentures

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4
Q

Cash sales

A

When customers pay for their goods and services straight away

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5
Q

Commission received

A

A percentage of another firm’s revenue from a sale paid to another business that helped them achieve that sale

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6
Q

Compliance

A

Following rules related to finance and accounting

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7
Q

Control

A

Policies and procedures that prevent fraud and manage trade receivables and trade payables

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8
Q

Credit sales

A

When customers pay for their goods and services a while after receiving them

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9
Q

Debentures

A

Long-term business loans that are not secured against assets

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10
Q

Discount allowed

A

A reduced price offered to customers is classed as a cost

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11
Q

Discount received

A

A reduction in the price of goods and services offered by a supplier

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12
Q

Intangible assets

A

Goodwill, patents, trademarks and brand names

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13
Q

Interest paid

A

payments made to financial institutions to borrow money from them. Calculated as a percentage of the loan amount.

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14
Q

Interest received

A

payments made to financial institutions to borrow money from them. Calculated as a percentage of the loan amount.

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15
Q

Interest received

A

Money received from financial institutions such as banks as a reward for saving money. Calculated as a percentage of money saved.

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16
Q

Inventory

A

Stocks of goods ready to sell, partially finished goods and raw materials.

17
Q

Loans

A

Money borrowed, usually from a bank, which will be paid back in installments with interest.

18
Q

Management

A

planning, monitoring and controlling

19
Q

Measuring performance

A

Comparing revenue, costs and profits to forecasts or goals

20
Q

Mortgages

A

Loans from banks and building societies that are used to buy land and buildings such as offices and shops.

21
Q

Non-current assets

A

Tangible and intangible assets that a business expects to keep in their current form for at least 12 months

22
Q

Owner’s capital

A

Owner financial contributions to a business

23
Q

Purpose of accounting

A

Recording transactions, management, compliance, measuring performance and control.

24
Q

Recording transactions

A

Entering money received and spent in a document or database.

25
Reducing balance depreciation
An asset is depreciated by a set percentage of its remaining value each year
26
Rent received
Payments that tenants make to landlords for use of their property
27
Revenue expenditure
Expenses that are incurred in the daily operations of a business
28
Revenue income
Cash sales, credit sales, rent received, commission received, interest received and discount received.
29
Shares
Portions of a business ownership that can be bought by investors
30
Straight-line depreciation
(cost-residual value)/useful life