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9707 business studies
- Thread starter dishant.k
- Start date
Capital expenditure is for assets that long for
more than 1 year.
Revenue expenditure is on assets & costs that
will last for less than a year.
Both these types will be financed in different
ways & the length of time the money is tied up
will play an imp influencing factor.
It would be risky to borrow long term finance
to pay for short term needs.
permanent capital would be needed for long
term policies/objectives.
Short term finance would be advisable to
finance short term needs.
I hope this is sufficient......
any more help ask me any time
more than 1 year.
Revenue expenditure is on assets & costs that
will last for less than a year.
Both these types will be financed in different
ways & the length of time the money is tied up
will play an imp influencing factor.
It would be risky to borrow long term finance
to pay for short term needs.
permanent capital would be needed for long
term policies/objectives.
Short term finance would be advisable to
finance short term needs.
I hope this is sufficient......
any more help ask me any time
- Messages
- 19
- Reaction score
- 5
- Points
- 13
Do you know questions from the paper that follows, paper 12? 