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Capital expenditure
Finance spent on fixed assets. They have a long term function. Examples would be land, buildings, and machinery
Revenue expenditure
Payments for the daily running of a business. It’s short term. Examples would be wages, raw materials, and rent.
Why do businesses need various sources of finance?
purchase raw materials
components and inventory
payment of wages, salaries, rent, etc.
Finance
It’s necessary for running a business.
Note
Flashcard