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What is meant by defferred revenue expenditure
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Answer / babulu180605
A heavy expenditure of a revenue nature incurred for
getting benefit, which extends to two or more years is
termed as "Defferred Revenue Expenditure". It is written
off over two years or more during which the benefit is
likely to last.It appears in the asset side of the balance
sheet.
Examples: Expenses of research and development, Abnormal
loss arising out of fire, preliminary expenses, expense of
shifting the place of business.
| Is This Answer Correct ? | 86 Yes | 13 No |
Answer / pavan kumar
it is a expenditure of revenue nature from wich we will get
the benifits for more than one accounting year.
| Is This Answer Correct ? | 36 Yes | 8 No |
Answer / krishnachaitanyanellore
Before proceeding to discuss the D.R.E....
Capital expenditure is that amount of funds required to
raise infrastructural facilities,also called as fixed assets.
and, Revenue expenditure is that amount of funds used which
shall yield benefits for the current period.
Now,Deferred revenue expenditure is neither Capital
expenditure of the revenue expenditure.So, it neither
acquires any asset not yield benefits in the current period.
Examples of such type are: preliminary expenses,company
formation expenses.....
| Is This Answer Correct ? | 13 Yes | 5 No |
Answer / laxman
Deffered revenue expenditure is an expenditure which has
been done at the initial stage of the business and the
benifit will get the subsequent years that means the
benifit will get more than one year is called defferred
revenue expenditure.
ex:an adv expenditure 2000 done at initial stage of the
company but the benifit will come ever year 500 that means
five years we will get benifit from that
| Is This Answer Correct ? | 9 Yes | 3 No |
Answer / simran
Defferred revenue expenditure
it is an expenditure of revenue nature whose benefit we
will
get for more than one year.
eg preliminery expense,advertisement expense,expense of
research and development etc.
| Is This Answer Correct ? | 8 Yes | 2 No |
Answer / g. shanker
Differed revenue expenditure which is incurred during an
accounting peroid but is applicable further periods also.
Eg: heavy Advertisement expenditure.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / harsh dave
It is an expenditure the benefi of which lasts for more
than one accounting period.it has to be written of over a
peiod of time...eg advertisement expenditure
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / basavaraja b v
An expenditure which has been incurred during one accouting
year but helps to earn existing revenue for three or four
years. Heavy advertising to introduce a new product or to
explore a new market is an example. Such expenses should be
properly spread over the period.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / deepak ku. jha
DRE are the expenses incurred during one accounting year to
get its benefit in future or say more than one accounting
year. It is the investment to get future benefits.
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / shakti ranjan
in simple , it is a expenditure of revenue nature which we
will get the benefit for the last year
| Is This Answer Correct ? | 2 Yes | 0 No |
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