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What do u mean by Deferred Revenue Expenses? Explain with
examples?
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Answer Posted / kapil
Deferred Revenue Expenditures are those expenditures which have been incurred in an accounting period and they do not create any assets but their benefit is spread in more then one accounting period Ex. Advertisement Cost .
Deferred expenditure refers to expenses incurred which do not apply to the current accounting period. Instead, they are debited to a 'Deferred expenditure' account in the non-current assets area of your chart of accounts. When they become current, they can then be transferred to the profit and loss account as normal.
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