Chapter 15: Business Finance

Is the money invested into a business either by its owners or by organizations such as banks.

• Capital

• Share Capital

• Loan Capital

• Asset

• Non-current Asset

Is the money invested into a company by shareholders when they buy shares.

• Capital

• Share Capital

• Loan Capital

• Asset

• Non-current Asset

Is money invested by a business as a result of borrowing.

• Capital

• Share Capital

• Loan Capital

• Asset

• Non-current Asset

Is any item owned by a business that can generate an income for the enterprise.

• Capital

• Share Capital

• Loan Capital

• Asset

• Non-current Asset

Are assets that a business expects to hold for one year or more. Examples include property and vehicles.

• Capital

• Share Capital

• Loan Capital

• Asset

• Non-current Asset

Is the cash a business has for its day-to-day spending.

• Working capital

• Current assets

• Current liabilities

Are items owned by a business that can be readily turned into cash. Examples include cash, money owed by customers and inventories.

• Working capital

• Current assets

• Current liabilities

Are short-term debts of a business, usually repaid within one year.

• Working capital

• Current assets

• Current liabilities

Is the spending by a business on non-current assets such as premises, production equipment and vehicles.

• Capital Expenditure

• Revenue Expenditure

• Statement of Financial Position (used to be called Balance Sheet)

• Income Statement

Refers to the purchase of items such as fuel and raw materials that will be used up within a short space of time.

• Capital Expenditure

• Revenue Expenditure

• Statement of Financial Position (used to be called Balance Sheet)

• Income Statement