What are Incorporated Businesses?

WHAT ARE INCORPORATED BUSINESSES? Incorporated businesses are set up with Companies House and are governed by the Companies Act; and these require more stringent rules to be complied with along with the tax rules to comply with. The incorporation process establishes a company which becomes a separate legal entity from its owners. They are required … Read More

Clothing Donation Week – Please Donate!

This Friday, some of our staff and students will be visiting a local charity shop to drop off clothes that have been graciously donated to us by our students and staff. If you wish to donate, please drop off your unwanted clothes to our office this week and help support local charitable causes!

What is a liability?

 WHAT IS A LIABILITY? Liabilities are things that are owed by the business which are the obligations or debts of the business. These could be classed as: ·        Non-Current liabilities ·        Current liabilities  Non-Current liabilities are obligations that are owed by the business over a long period of time usually for longer than one year … Read More

Overhead Absorption Rates

Absorption of overheads is the process by which the total cost of a production centre is charged to the cost units within that centre. Absorption of overheads is charged to cost units based on an absorption rate and this is calculated at the beginning of the period based on budgeted activity and budgeted overheads. There … Read More

Capital vs revenue expenditure

Capital and Revenue expenses Capital expenditure occurs when a business spends money in purchasing non-current assets for the business operations or when it spends money in adding value or improving an existing non-current asset. This will include delivery and legal costs in acquiring the non-current assets. Non-current assets are items owned by the business which … Read More