May 16th
Business
Learning outcomes: By the end of this class, you should be able to:
● define the following terms: (AO1)
○ capital expenditure
○ Investment
○ revenue expenditure
● distinguish between capital expenditure and revenue expenditure (AO2)
Bibliography: Kognity section 3.1
Activity:
1. Read: section 3.1
2. Test your understanding of the different examples of revenue expenditure
and capital expenditure
Example of business spending Revenue or Capital expenditure
Advertising costs
Bank charges and interest on bank loans
Computer software and hardware
Corporate taxes (on company profits)
Insurance costs
Machinery and equipment
Maintenance and repairs
Management salaries
Manufacturing equipment and machinery
Motor vehicles
Office furniture
Patents, copyrights, and trademarks
Purchase of buildings and premises
Stationery costs
Utility bills (gas, electricity, and telecommunications)
Bibliography: Kognity section 3.1