ocr level 3 cambridge technicals in business unit 4: business accounting capital and revenue
TRANSCRIPT
OCR Level 3Cambridge Technicals
in Business
Unit 4: Business Accounting
Capital and Revenue
Capital IncomeCapital IncomeThe money used to set up a business – initial
investment - sole trader/partnership
Share capital – Private and Public limited companies
Further investment into the business
by owners
Loans received from a third party
Revenue IncomeRevenue IncomeMoney received from normal business
activity – sales revenue
Rent received
Commission received
Capital ExpenditureCapital ExpenditureExpenditure incurred on the purchase,
alteration or improvement of fixed assets
Fixed assets - items that will be used in the business longer than
one year
Capital expenditure includes the following:
Improvement to fixed assets – not repair
Legal costs of buying property
Revenue ExpenditureRevenue ExpenditureExpenditure incurred on running expenses.
Running expenses – costs that are incurred in the running of the business which are not directly related
to sales. These would include:
Rent, rates, interest payments on a loan
Utility bills – gas, water, electricity
Running costs of vehicles – petrol
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