• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


´╗┐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.


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.


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. This paper will concentrate on Apples Apple TV business, and its complementing iTunes business.

    TV, and iTunes are sent to existing customers and people who have expressed interest in certain products Feature set is always enriched The first release of Apple TV did not have many of the features like the current Apple TV has such as HD rentals, direct connection to the iTunes store without a computer etc.

  2. Revision notes - Accounting terms, Finance and Budgeting

    Limited company - shares not available through the stock market. Management accounting. Accounting statements that are produced to assist the company's marketing. Management accounts can be used for planning, decision making, review and control. Margin of safety. The amount by which demand can fall before the company begins to make a loss.

  1. AVCE Unit-3 Marketing

    Gender: Male = 22 Female = 28 3. What type of chocolates do you buy? Mars = 16 Snickers = 8 Twix = 5 Cadbury's Diary Milk = 8 Kit Kat = 6 Timeout = 3 Milky Bar = 2 Other = 2 4. How often do you buy chocolates in a week?

  2. New business plan

    Therefore the mission of our restaurant is To meet consumer, major tourists and business customers, desire for a healthier dedicated high quality lifestyle by providing a tasty and nourishing eating experience which, through the use of naturally and organically grown produce and meats, offers an alternative to experience an Oriental

  1. Is profit the main objective for business? Profit can be described as whatever ...

    At the beginning, the owner may be satisfied for the company merely to survive its early problems while building a reputation and a guaranteed market share (the percentage of all the sales within a market that are held by one brand or company).

  2. Case Study of Reach Out, a business providing therapy to children with autism.

    Enjoys taking decisions independently. 2. Does not prefer employee input. 1. Andrew Grandin 1. Designation ? Scheme Manager His roles included: 1. Overseeing the therapist scheme 2. Managing therapists However, due to his difficulties with social situations, working with adults, computing skills there were several complaints about him from the families.

  1. Questions on Globalisation and International Trade

    country as a whole Answer: The theory of comparative advantage suggests that a country should specialize in producing those goods that it can produce most efficiently, while buying goods that it can produce relatively less efficiently from other countries. Furthermore, the theory suggests that opening a country to free trade stimulates economic growth, which creates dynamic gains from trade.

  2. Marketing Plan. Launching a Karaoke Bar in Bangladesh

    The bar will be built with this segment in mind. A comfortable lounge will be created for the enjoyment of the live music as well as small cocktail tables that will be offered for those who would like to eat a light meal while enjoying the shows.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work