Glossary

Finance and
accounts
 Capital Revenue
expenditure expenditure
Examples
Examples Utility bills (e.g. gas,
electricity, water and
Buildings telephone bills)
Tools and equipment
Wages and salaries to
Machinery employees

Refers to business spending on Refers to business

non-current assets or capital spending on its everyday
equipment of a business. and regular operations.
Sources of Internal sources
finance of finance
Examples Examples
personal funds for sole
personal funds
traders
share capital Retained profit
The sale of assets.
bank loans

are the various ways are those that come from within
that a business gets its the organization, from its own
money in order to run resources and assets, without the
the business help of a third party.
 Personal
funds
Sole traders and partners, as types of
business entities, usually rely on
personal funds from their own savings
to finance their start-up businesses.
Retained
profit
Profit belongs to the owners of
the business, but can be
distributed as a financial
reward for the owners and/or
retained within the business as
an important source of internal
finance.
 Sale of
assets
An asset is anything that a
business owns and has a
marketable value, such as
buildings, vehicles,
computers, equipment and with the help of a third
intellectual property.
External sources
of finance
are those that come
from outside the
organization, usually
party provider.
 Short-term Long-term
finance finance
Refers to sources of refers to sources of
finance needed for the finance of more than
day-to-day running of a
one year from the
business, i.e. its revenue
expenditure. balance sheet date.