Types of expenditure - C

Question 1

What does capital items mean?

Answer 1

Capital items - assets bought from capital expenditure such as machinery and vehicles that will stay in the business for more than a year.

Question 2

What does statement of financial situation mean?

Answer 2

Statement of financial situation – a financial document that shows the net worth of a business by balancing its assets against its liabilities. It is often called a balance sheet.

Question 3

What does depreciation?

Answer 3

Depreciation – an accounting technique used to spread the cost of an asset over its useful life.