IB Business 3.1-3.3

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capital expenditure is:

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money spent to acquire item in a business that will last for more than a year

Front

fixed assets include: labor, raw materials, landscape, machinery, food, shelter, clothing, machinery, land buildings, vehicles, equipment, rent, wages, raw materials, insurance, fuel

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machinery, land buildings, vehicles, equipment

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Can fixed assets be used as collateral (financial security pledged for repayment of a loan)?

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True

Front

revenue expenditure is defined as

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money spent on the day to day running of a business

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What does revenue expenditure consist of? Options: rent, wages, raw materials, insurance, fuel, machinery, land, buildings

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rent, wages, raw materials, insurance, fuel

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What is the focus of revenue expenditure? Options: short term focus, long term focus, medium term focus

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short term focus

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internal sources of finance: personal funds, sale of assets and retained profit, land, equipment, insurance, none of the above

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personal funds, sale of assets and retained profit

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What are a sole trader's personal savings? Options: personal funds, sale of assets, retained profit, none of the above

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personal funds

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What is obsolete machinery or redundant buildings, land, and equipment classified as? Options: personal funds, retained profit, sale of assets, both a and c

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sale of assets

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profit that remains after a business has paid tax to the government and dividends to shareholder.

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retained profit