3.1 Sources of finance - notes
Role of Finance for Business AO2
AO2 You need to be able to: Demonstrate application and analysis of knowledge and understanding Command Terms: These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate: Analyse, Apply, Comment, Demonstrate, Distinguish, Explain, Interpret, Suggest
Capital expenditure is spending to acquire or upgrade physical assets such as buildings and machinery and not for operating expenses; also called capital spending or capital expense.
Revenue expenditure is spending related to the day-to-day running of
the business, e.g. administrative and selling expenses including raw
materials, wages and salaries, marketing etc