Expenditure

• What is capital expenditure?

  Assets the business plans to use over a long period of time - 2 types tangible and intangible
• What are intangible assets?

  Not physical items - difficult to sell

  examples:

  • Patents
  • Trademarks
  • Brand names
  • Goodwill
• What are tangible assets?

  Any assets in a business that are physical

  examples:

  • Land
  • Buildings and premises
  • Machinery & equipment
  • Vehicles
  • Fixtures & fittings
• What is revenue expenditure?

  The day-to-day costs incurred in running a business.
• Examples of revenue expenditure

  • Rates
  • Rent
  • Inventory
  • Discount allowed (Customers receive money off goods)
  • Interest paid
  • Bank charges
  • Wages
  • Depreciation
  • Marketing
  • Salaries
  • Stationary & printing
  • Postage & telephone
  • Administration
  • Insurance
  • Bills