what is meant by deferred revenue expenditure?
Answers were Sorted based on User's Feedback
Answer / guest
Deferred revenue expenditure is a revenue expenditure whose
benifits spread more than one year.
Ex:heavy expenditure on advertisement
Is This Answer Correct ? | 9 Yes | 0 No |
Answer / m.l.verma
Suppose we have expense 200000/- expense on advertisement and we will get crediblity profit of advertisement for four year. then we will get show Rs 50000/
as Advertisement A/c in profit & loss A/c as current year expenses. And Balence of 150000/ will be shown in balance sheet in assets side. Next year Again 50000/-will be in profit & loss A/c and 100000/-in Balance sheet and so on upto amount adjusted.
Is This Answer Correct ? | 10 Yes | 1 No |
Deferred revenue is important because it's the money a
company collects before it actually delivers a product. For
example, a software company sells and receives payment for
a computer program before it gets delivered or installed.
This doesn't get recorded as straight revenue because, if
something goes wrong with the job, the money is at risk.
Is This Answer Correct ? | 1 Yes | 4 No |
What are the differences between contrast bookkeeping and accounting
what type of acounts is share application account
8 Answers KPSC Karnataka Public Service Corporation,
in terms of accounting the trial balance when is it taken?
What is the Account Receviable for Airport?
sir , i am very confussing enrty for cash receipts in t code fbcj. do the effect on wbs element after selected wbs ?
A change in accounting policy is justified (a) To comply with accounting standard. (b) To ensure more appropriate presentation of the financial statement of the enterprise. (c) To comply with law. (d) All of the above.
If Cost of goods sold is Rs.80,700, Opening stock Rs.5,800 and Closing stock Rs.6,000. Then the amount of purchase will be (a) Rs.80,500 (b) Rs.74,900 (c) Rs.74,700 (d) Rs.80,900.
Company Providing Mobile handset to all employee on free of cost and returnable basis while leaving the job. My query is- how i account the above transaction - under fixed asset or mobile expenses- ( indirect exp) or staff welfare ( indirect exp ) Kindly suggest
what is difference between income and gain?
what is the difference between a company balance sheet and that of a bank?
what is the entry pass of prepaid expense & o/s expenses?
What will be the journal entry of purchase and sale for ac purchased for 40000 vat 5% sold for 45000 vat5%