CHAPTER 18 BUSINESS FINANCE 21/05/2019 This is the Title Slide

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CHAPTER 18 BUSINESS FINANCE 21/05/2019 This is the Title Slide R. DELANEY

R. Delaney Expenditure Current or short-term expenditure is spending on the on-going or repetitive costs of running a business. Capital expenditure is spending on fixed assets. Medium-term expenditure is spending on assets that will have to be replaced within the foreseeable future, normally within a 3- to 5-year period. Long-term expenditure is spending on assets that the firm does not intend to replace in the foreseeable future.

Examples of Expenditure R. Delaney Examples of Expenditure Short Term Medium Term Long Term Wages Computers Land Insurance Furniture Buildings Stock Delivery vans Fixtures Electricity Photocopiers Plant

Sources of Finance Short Term Medium Term Long Term Firm’s cash R. Delaney Sources of Finance Short Term Medium Term Long Term Firm’s cash Term loan Issue of shares Creditors Hire purchase Long term loans Bank overdraft Leasing Retained profits Factoring of debtors Issue of debentures Accruals / Expenses due Sale and leaseback Grants