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Commerce · Q375

Accounting

Graduate and Post Graduate · Commerce · question 375

Q375

Heavy amount spent for the advertisement of new company product is

A.
Revenue expenditure
B.
Deferred Revenue expenditure
Answer
C.
Capital expenditure
D.
Either 'a' or 'c'

Answer: Option B

Solution

Answer: Option B
Solution:
Heavy amount spent for the advertisement of new company product is Deferred Revenue expenditure. Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods.