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Capital and Revenue Income, Capital and Revenue Expenditure. Intangibles.

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Introduction

´╗┐Jordanna Males Unit 5 Business Accounting 20/09/2012 P2 Assignment Capital Income ? Capital income is money that has been invested by the owners or other investors; it is used to set up the business or to buy equipment. The money is usually used to buy equipment that is going to stay in the business for a long period of time, for example the ?Smoothie and Snack bar? business, the owner would have used the invested money to pay for premises, place to store the snacks and the Smoothie machine as he will be using these for a long period of time. These are called fixed assets. Stock should be paid for by sales income but some business?s use their invested money to pay for opening stock to help them get their business started. ...read more.

Middle

the business ?Smoothie and Snack Bar? wanted to put his shop on someone else?s premises then he would have to pay rent. Commission received is when someone or something sells products or services to customers, but the product or services are from another business. For example with the business ?Smoothie and Snack Bar?, some could set up a stool in a market selling that business?s products. The money that the stool makes would have to be shared with the original business. Capital Expenditure ? Capital expenditure is money that is used to buy items that will stay in the business for a long period of time, these items are either fixed assets or intangible. Fixed assets are items in the business which will be there for a long period of time like land, machinery, furniture and vehicles. ...read more.

Conclusion

Patent - When you invent something that you believe to be unique you should apply for a patent to protect your right to its use. A patent will give you the right to prevent others from manufacturing, importing, using or selling your invention without your permission. Trademark - A trademark is a symbol, logo, brand name or words for a business or a product. It is a way of representing your goods or services from those of its competitors and can play an important role in your marketing and branding activities. Revenue Expenditure ? Revenue expenditure is money that is spent on items on a day-to-day or regular basis. These are the expenses that are shown on the profit and loss account. The types of costs vary from business to business but the most common types of revenue expenditure are: ? premises costs ? administrative costs ? staff costs ? selling and distribution costs ? finance costs ? purchase of stock. Page of ...read more.

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