Classification of Expenditure and Introduction to Financial Reporting

Spending money is called expenditure and impacts the financial model of a business. In this course, part of the Balance Sheet series, you will learn the difference between capital and revenue expenditure. Each type of expenditure has a different impact on the business and must be classified and controlled. This understanding of expenditure forms a foundation for the basics of financial reporting. In this introduction, you will learn about the balance sheet and profit and loss statement, two financial reports of the business financial model, and the different views they give on the performance of a company.