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5 Cards in this Set

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What is capital Expenditure?
Capital expenditure is expenditure on assets wich are purchasesd for long-term (ie. more than one year) use in the business and are not to be resold exept at the end of their life. their use or effect is PERMANENT; they will INCREASE THE PROGITABILITY OF THE BUSINESS and will IMPROVE UPON THE ORIGINAL STATE OF THE ASSET.
What are some examples of capital expenditure?
Purchase of any fixed asset eg
Premisees, Motor Vehicles, Machinery, Fixtures and fittings, extension to premises etc.
what is REVENUE EXPENDITURE?
expenditure on expenses normally incurred when running a business; its effect or use is SHORT-TERM; it wil be used up in the course of 1 year; it will not improve upon the original state of an asset but will RETURN IT TO ITS ORIGINAL STATE.
What are some examples of REVENUE Expenditure?
Wages, Rent, Light and Heat, Stationary, Purchases of goods for resale, Telephone, Repairs etc.
what is renenure receipt?
this includes any progit or gains made by the business during the trading year.
eg. sales, rent received, interest recieved, bad debts recovered etc.