Note: Never use vague terms such as “money” in your exam! “Money” can refer to many different concepts like investment, profit, cash etc. The examiner assumes that you studied for the exam — when they read “money” instead of “profit” it could really lower your grade by showing that you are not familiar with the terminology.
Businesses have different types of expenditures:
Capital expenditure finance spent on fixed assets. Items of monetary value that have a long-term function so can be used repeatedly.
E.g., land, buildings, machinery.
Revenue expenditure payments for the daily running of a business.
E.g., wages, raw materials, rent, etc.
It also includes the indirect costs such as insurance and advertising.
