Unit 3 - C3 - Ms Powell Flashcards
What is Capital Expenditure?
These are assets - Capital items - that the business plans to use over a long period of time. There are two types of assets: non-current (tangible) and intangible
What are the examples of non-current assets?
Land, Buildings and premises, Machinery and equipment, Vehicles, Fixtures and fittings
What are the examples of Intangible assets
Goodwill, patents, trademarks and brand names
What are intangible assets?
Non physical items and may be difficult to value and sell.
What is revenue expenditure
The day-to-day costs incurred in running a business.
What are the examples of Revenue expenditure?
Rates, Heating and lighting, water, insurance, administration, telephone, postage, stationary and printing, salaries, marketing, reducing-balance depriciation, straight-line depriciation , wages, bank charges, interest paid, discount allowed, inventory, rent.
What is meant by rates?
Business tax on non domestic property used to fund local council services.
What is meant by Heating and lighting?
Payment for services such as gas and electricity.
What is meant by water in these terms?
Payment for supply of water to premises.
What is meant by insurance?
Businesses are legally required to take out buildings, contents, public liability and employers liability insurance.
What is meant by administration?
Paperwork required to run a business
What is meant by Telephone, Postage and Stationary and printing?
Administrative costs
What is meant by salaries
Annual sum of money divided into equal monthly payments, paid to an employee.
What is meant by Marketing?
Costs related to promoting and selling goods and services.
What is meant by wages?
Hourly rate paid to an employee
