6 Questions
What is the definition of Capital Expenditure?
Amount of finance spent on fixed assets for long-term use
Give an example of a Revenue Expenditure.
Wages
What are the sources of Internal Sources of Finance?
Retained profits, sale of assets, reduction of working capital
What is the main benefit of using Retained Profits as a source of finance?
Does not incur interest charges
What is an example of a fixed asset that can be purchased using Retained Profits?
Machinery
What is the main source of finance for sole traders and partnerships?
Personal Funds
Learn about the differences between capital expenditure and revenue expenditure in business finance. Understand how each type of expenditure impacts the financial health of a business.
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