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The purpose of accounting is to keep track of transactions and recording revenue and expenses are important business processes often applies to an accounting department or a financial manager.

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Introduction

Mr T Gary 13 Barley Avenue Essex CM1 2LB C&V fashions 138 Avon Road Dear Sir/Madame The purpose of accounting is to keep track of transactions and recording revenue and expenses are important business processes often applies to an accounting department or a financial manager. Accounting is a business conduct that allows companies to record and analyse financial information that can be used to decide a company's financial status. Financial accounting statements are mainly to show the financial position of a business at a particular point in times and to show how the business has achieved over a specific period. The three main financial accounting statements that help achieve this aims are * The profit and loss account for the reporting period * A balance sheet for the business at the end of the reporting period * A cash flow statement for the reporting period A balance sheet shows at a specific point in time what resources are owned by a business and also shows how much has been invested in the business and what sources of that investment finance were. However the profit and loss account provides a perspective on a longer time-period. ...read more.

Middle

Capital income - * Capital income can be described as the income that a person or business makes from the sale of their capital investment assets.(internet) * Capital income is the money that is used to set up a business(book) * The money, property, and other valuables which collectively represent the wealth of an individual or business.(internet) * Capital income might also be used to buy opening stock. Capital expenditure - * Capital expenditures are purchases that are reduced from expenses in the years after the item is purchased.(book) * A capital expenditure usually creates a realized benefit over a time frame greater than a year. Items that last for many years are considered capital expenditures.(internet) * Capital expenditure is money spent by a business and can be split into two categories; capital expenditures and revenue expenditures.(book) * Capital expenditures are expenditures creating future benefits.(internet) Revenue income- * Revenue expenditure- * Revenue expenditure is spending on items on day-to-day or regular basis.(Book) * The money spent on items that will be used within a year(book) * D) The Bay Horse Bar and Bistro (Moulsham Street). Capital Income: The Bay Horse was reopened in July 2011, after being closed for 6 years. ...read more.

Conclusion

Boots receive regular payments from their pharmaceutical contracts; this means that companies Boots deliver to have to pay Boots on a regular basis in order for Boots to keep delivering the goods, for example, hospitals and care homes pay Boots to deliver medicines and various medical supplies on a daily basis. Capital expenditure Boots would possibly be purchasing vans, shelving and fixtures, tills, computers, renovations, photo development equipment, lighting, food fridges, trolleys, new stores, and baskets and security cameras. These all come under the capital expenditure category because they would all be staying in the business for a long period of time and are necessary for Boots to create a profit. Revenue expenditure In order for Boots to keep running it's day to day functions it would need to pay for certain things on a regular basis, such as staffing costs, electricity costs, gas costs, fuel costs (petrol , diesel, biodiesel). Boots will spend a lot of money on advertising campaigns in order to stay ahead of competing companies, such as Superdrug. Capital income Boots would raise capital income in various ways, such as selling off multiple shares in the company to investors wanting to be a part of the company. Boots could also gain money from collecting debentures. http://www.google.co.uk/#sclient=psy-ab&hl=en&source=hp&q=capital+income+&pbx=1&oq=capital+income+&aq=f&aqi=g4&aql=&gs_sm=e&gs_upl=7129l7129l3l7582l1l1l0l0l0l0l0l0ll0l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=d2e50a323c10dbe7&biw=1440&bih=696 http://www.investopedia.com/terms/c/capitalexpenditure.asp#axzz1Zj9CZm4N ?? ?? ?? ?? Ninthusha Satkunalinagm 1 ...read more.

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