Business Studies, asked by mischievousgirl6744, 1 year ago

Brokerage on issue of shares and debentures is which expenditure

Answers

Answered by mishravansh05214
0

Deferred revenue expenditure, bco'z this expenditure incurred in once but gives a long term benefit.

Answered by mindfulmaisel
0

Brokerage on the issue of ‘shares and debentures’ is a Deferred Revenue Expenditure.

Explanation:

  • The amount that is ‘spent’ on providing returns in the form of profits is called revenue expenditure.  
  • When there is a large ‘amount of revenue’ that is spent on getting a benefit over a period of time is called deferred revenue.  
  • The ‘brokerage’ on the issue of shares, debentures and other expenses that are spent for the running of the business are all part of the deferred revenue.

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