3 Accounts and finance

Table of Contents

1. Topic pack - Accounts and finance - introduction
2. 3.1 Sources of finance - notes
   1. Sources of finance
   2. Forms of finance
   3. Type: equity or debt
   4. Source of funds
   5. Source of funds: Internal sources of finance
   6. Source of funds: External sources of finance
3. 3.1 Sources of finance - questions
4. 3.2 Investment appraisal - notes
5. Investment appraisal
6. 3.2 Investment appraisal - questions
7. 3.3 Working capital - notes
8. 3.3 Working capital - questions
9. 3.4 Budgeting - notes (HL only)
10. 3.4 Budgeting - questions
11. 3.5 Final accounts - notes
12. 3.5 Final accounts - questions
13. 3.5 Final accounts - simulations and activities
14. 3.6 Ratio analysis - notes
15. 3.6 Ratio analysis - questions
16. 3.6 Ratio analysis - simulations and activities
17. Printable version

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 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 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