3.1_Introduction_to_finance_new_syllabus_2022

3.1 Introduction to Finance

• Overview of the importance of finance in business and organizations.

• Key concepts within finance that will be explored in further sections.

Types of Expenditure

• Fixed Assets (Non-Current)

  • Money spent on assets that a business plans to retain for a long-term.

  • Examples: Machinery, land, buildings.

• Capital Expenditure

  • Funds used to acquire or upgrade physical assets, improving the long-term productivity of the business.

• Revenue Expenditure

  • Money required for day-to-day operations of the business.

  • Includes: Wages, utility bills, and indirect costs.

Non-Current (Fixed) Assets

• Definition: Tangible assets with physical existence, used in the business for over 12 months.

• Physical Existence: Examples include:

  • Land

  • Buildings

  • Vehicles

  • Machinery

Tesla Capital Expenditure

• Data representation of Tesla's capital expenditure from 2008 to 2017.

• Source: www.statista.com

• Key figures for each year:

  • 2008: 3.50

  • 2009: 1.28

  • 2010: 0.97

  • 2011: 0.18

  • 2012: 0.24

  • 2013: 0.26

  • 2014: 0.01

  • 2015: 0.01

  • 2016: 0.04

  • 2017: (data not provided)