Introduction to Finance 3.1

Flashcards about the role of finance in business

What are some of the roles of finance in a business?

The purchase of raw materials, components, and inventory; the payment of wages, salaries, insurance, and bills.

How can the role of finance for business be categorized?

Capital expenditure and revenue expenditure.

What is capital expenditure?

Money spent to acquire fixed assets in a business.

What are examples of fixed assets?

Machines and buildings.

What is revenue expenditure?

Money used in the day-to-day running of a business.

What are examples of revenue expenditure?

Rent, wages, and raw materials.