Types of expenditure

capital expenditure

• money spent on capital items

non-current assets

• assets a business r likely to keep for more than a year

• accounted for a statment of financial postion (balance sheet)

• also known as fixed assets

• they lose value over time (depreaciate) — this is accounted for

2 types of fixed assets

tangable

• can touch or see

• will depreacate over time

intanagble

• cant see or touch but adds value to the business

• good will (brand recognition and loyal customers), patents(legal protection), trade marks, brand name.

revenue expenditure

• accounted for on the statment of comprehensive income

• operating costs

• Inventory

• Rent

• rates(tax

• Utility bills

• Insurance (builiding, employee liability )

• administration( postage, printing)

• saleries and wages

• Marketing

• Bank charges (business account charge)

• Interest payment

• Depreciation

• Discount allowed (if u give out a discount)