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 Audit interview questions  Audit Interview Questions (428)
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 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4374)
Question
what is differed revenue expenditure
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
Deferred Revenue Expenditures are those revenue expenditures
which are incurred during a financial period, but the
benefit of which is expected over future financial periods.
Generally the amount will be substantial and charging the
full amount to that year's Profit & Loss A/c will distort
the operating result of that financial period. A part of the
expenditure is written off to the Profit & Loss A/c over
more than one financial period during which the benefit is
expected.
This expenditure will be huge but does not result in
creation of any tangible asset when incurred. For example,
initial Advertisement or Branding expenditure.
 
Is This Answer Correct ?    5 Yes 0 No
H.r. Sreepada Bhagi
 
Answer
# 2
Deferred revenue expenditure refers to an expenses accured
during the current accounting period but applicable further
period also...example :- heavy advertisements
 
Is This Answer Correct ?    0 Yes 0 No
S.anil Kumar
 
 
 

 
 
 
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