Types Of Expenditure

Question 1

what is capital expenditure

Answer 1

funds used to acquire or upgrade physical assets such as property, buildings or equipment and also intangibles.

Question 2

what can capital expenditure be used for

Answer 2

can be used to purchase non-current assets.

Non-current assets are a companies long term investments (longer than a year).

they can also purchase intangible assets

Question 3

give examples of non current assets

Answer 3

Property

Land

Vehicles

Equipment

Question 4

what are intangible assets

Answer 4

assets that are not physical

Question 5

give examples of intangible assets

Answer 5

Patents

Trademarks

Goodwill

Brand recognition

Intellectual property

Question 6

what is revenue expenditure

Answer 6

money spent by the business on the day to day running of the
business.

amount of money spent will depend on the
type of business being run.

An online business may have significantly lower revenue
expenditure than a manufacturing business with lots of employees and buildings.

Question 7

give examples of revenue expenditure

Answer 7

Inventory

Rent

Rates

Heating & Lighting

Water

Insurance

Administration

Salaries

Wages

Marketing

Bank Charges

Interest Paid

Depreciation