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Business Finance

Junior Cert Business Studies

Current 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
Factoring means a business passes on (sells), at a discount, the debts owed to it, in exchange for immediate cash.
A Debenture is a certificate acknowledging the existence of a debt. It is normally issued in the case of a long-term loan secured against the assets or an asset of a business.
Sale and leaseback occurs when a firm sells a fixed asset to a finance company and then leases the asset from it over a long-term agreement.



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