income and expenditure

This is money used to set-up a business, It is a long-term investment.

• Revenue income

• Capital income

• Capital expenditure

• Revenue expenditure

This is income received by a business on sales of its goods and services

• Revenue income

• Capital income

• Capital expenditure

• Revenue expenditure

These are assets that the business plans to use over a long period of time

• Revenue income

• Capital income

• Capital expenditure

• Revenue expenditure

day-to-day costs of running a business

• Revenue income

• Capital income

• Capital expenditure

• Revenue expenditure

Tick all the intangible assets

• goodwill

• land

• patents

• trademarks

• brand names

identify items of revenue expenditure

• interest paid on mortgages and loans

• land

• wages paid to employees

• vehicles

• heating and lighting

identify examples of capital expenditure

• land

• fixtures and fittings

• inventory

• insurance

• machinery and equipment

Identify examples of capital income

• owner's savings

• mortgage

• rent received 

• money received from the sale of shares

• credit sales

identify examples of revenue income

• loan from bank

• credit sales

• commission received

• interest received on savings

• discount received (business pays a reduced price on goods)

Debentures are

• owner's investing their personal savings in the business

• a type of bond issued by large companies to raise money. investors receive interest on their loan which paid back in full by an agreed date

• issued by the company  to shareholders who own the business

• a long term loan usually used to buy property, such as a business premises