Types of expenditure:
Capital expenditure – used to buy capital items, which are assets that will stay in the
business for a long period of time. Capital items are non-current (long term) and intangible
assets.
Revenue expenditure – spending on items on a day to day regular basis. These are the
expenses incurred by a business that are shown on the profit and loss account (aka a
statement of comprehensive income) The types of cost incurred vary from business to
business.
Capital = land, buildings and premises, machinery and equipment, vehicles, fixtures and
fittings, goodwill, patents, trademarks, brand names
Revenue = heating and lighting, water, discount allowed, inventory/stock, rent, bank
charges, interest paid
Tangible = land, buildings and premises, machinery and equipment, vehicles, fixtures and
fittings
Intangible = goodwill, patents, trademarks, brand names
Capital expenditure – used to buy capital items, which are assets that will stay in the
business for a long period of time. Capital items are non-current (long term) and intangible
assets.
Revenue expenditure – spending on items on a day to day regular basis. These are the
expenses incurred by a business that are shown on the profit and loss account (aka a
statement of comprehensive income) The types of cost incurred vary from business to
business.
Capital = land, buildings and premises, machinery and equipment, vehicles, fixtures and
fittings, goodwill, patents, trademarks, brand names
Revenue = heating and lighting, water, discount allowed, inventory/stock, rent, bank
charges, interest paid
Tangible = land, buildings and premises, machinery and equipment, vehicles, fixtures and
fittings
Intangible = goodwill, patents, trademarks, brand names
