Revenues

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

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

- 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

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.