Revenue Income

This can be defined as income that has been earned by the business through the sales of goods and services, it can be shown as the examples down below:

- Cash sales which are sales paid at time of purchase

- Credit sales which are sales through credit

- Commission which is a percentage earned on selling other goods

- Interest is being received and earned as savings

- Rent has been received from lands and buildings

- Discounts have been collected for paying a reduced price for a purchased asset

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Revenue Expenditure

This is defined as the day to day expendure which is able to help generate revenue. The assets can be shown as the following down below:

- Inventory can be shown as stock, raw materials that have added value and are able to generate revenue and variable costs which can be used for goods

- Rent can be used as fixed costs but not gaining a fixed premise

- Interest can be shown as fixed costs unless on tracking mortgage where it jumps due to the Bank of England

- Utilities can be shown as heating, lighting, water and electricity

- Administration can be shown to have an effective team to invoice for services that have been provided in, products which have been delivered and for receiving payments for those products

- Postage & Stationary can be shown as variable costs to ruse as more products are sold, more deliveries as well

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Revenue Expenditure

- Bank charges can be shown as loans, overdrafts to facilities that they are offered, taking care of mortgages and is transferred as capital income

- Rates for council tax, businesses need to pay for the fixed costs

- Depreciation for the allowance of provision of that has been set in machinery and is set in the future as it has been covered up for a period of time and has occured as a daily basis for marketing

- Salaries are shown as fixed costs

- Wages are shown as variable costs

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Capital Expenditure

This is based on long term assets and that can be either known as non - current assets such as buildings and machinery or intangible assets such as patents and brands. These can be shown as the following down below:

- Non - current assets tends to be land, machinery, fixture and fittings, buildings and vehicles

- Intangible assets tend to be goodwill, patents, trademarks and brand name.

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