Types of Expenditure and Revenue Flashcards
1
Q
Capital Expenditure
A
Expenditure incurred on the purchase of non-current assets.
2
Q
Name an example of Capital Expenditure
A
A car for use in the business.
3
Q
Revenue Expenditure
A
Expenditure incurred on purchases made by the business or running expenses
4
Q
Name an example of of revenue expenditure
A
The cost of petrol or diesel in the car used by the business.
5
Q
Capital Income
A
Income received from non-regular (one-off) transactions
6
Q
Name 2 examples of Capital Income.
A
- Receipts from sales of non-current assets.
- Receipts from loans raised from banks.
7
Q
Revenue Income
A
Income received from sales made by the business and other regular amounts of income.
8
Q
Name 2 examples of Revenue Income.
A
- Receipts made from sales made by the business
- Receipts from rent from business premises rented out
