| A | B |
|---|
| Capital Expenditure | When a business spends money to purchase fixed assets (capital items) including delivery, installation or training costs |
| Revenue Expenditure | When a business spends money to purchase items such as stock needed to generate revenue for the business, or pays overhead expenses (also known as its running costs) |
| Capital Income | The money a business receives from investors (capital), the sale of fixed assets or from a business loan |
| Revenue Income | Income generated through the sale of goods and services, or from renting out part of its land, property etc. to other persons or businesses |
| Intangible Assets (also known as Intangibles) | Assets of a business that cannot actually be seen or touched but exist and add value to a business. Examples are goodwill, patents and trademarks. |
| Tangible Fixed Assets | Fixed assets owned by a business that can be seen and touched, such as vehicles, property, machinery etc. |
| Opening stock | The value of stock held by a business on the first day of a new trading period (e.g. on 1st Jan) |
| Closing stock | The value of stock held by a business at closing on the last day of a given trading period (e.g. on 31st Dec) |
| Mortgage | A substantial loan specifically to buy land and property for business or prviate purposes |
| Overheads | Another name for the running costs of a business |
| Venture Capitalist | An individual (or group of individuals) who will invest in business in return for a share of the profits (e.g. 'The Dragons' |
| Partnership | Where two or more individuals are in business together and share profits and losses in an agreed ratio. |
| Sole trader | An individual trading in business on their own |
| Business loan interest | a sum of money repaid to a lender in addition to the amount borrowed which can be classed as revenue expenditure |
| Insurance | Revenue expenditure paid by a business to recover losses from, for example, fire, theft, damge to its assets or to protect its employees and customers in case of their injury at work |
| Training | An essential item of revenue expenditure in most businesses to ensure as far as possible its employees work efficiently and effectively |
| Buildings | Fixed assets that high street retailers need to enable them to operate |
| Telephone charges | A major expense for a firm engaged in telephone sales |
| Credit transactions | Those business transactions that involve 'buy now and pay later' usually within 30 days |
| Cash transactions | Business transactions involving immediate payment |
| Gross profit | Defined as Sales Revenue less cost of goods sold |
| Net profit | Defined as Gross profit less overhead expenses |
| Liabilities | Something that a business owes rather than owns |
| Carriage outwards | A revenue expense when the seller pays the delivery costs |
| Rent received | Revenue income generated by sub-letting a part of your business premises |
| Office equipment | Fixed assets such as computers, tills, franking machines, fax machines |
| Fixtures and fittings | Fixed assets such as retail shelving, display units etc. |
| Machinery | Fixets assets, typically owned by businesses which manufacture products in an engineering environment |
| Dividend | A share of company profits paid to shareholders |
