ocr: Money Invested Diagram Money spent on fixed assets provides a future benetit to the business and is therefore regarded as an investment. Similarly, money spent on the working capital area of the business should result, ultimately, in the receipt of sales revenue from a satistied customer. Since this sales revenue is obviously a future benefit to the business, we also regard expenditure on working capital items as being money invested. Capital Equity - E Working Capital - - Loan - a - Period Capital - - - a - Expenses Reserves Assets Fixed
(.png)
