What is meant by defferred revenue expenditure
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Answer Posted / 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.
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