Classify the following as capital expenditure, revenue apenditure and
deferred revenue expenditure for a cloth merchant?
(a) Preliminary Expenses
(b) Purchase of Furniture
(c) Payment of Salary
(d) Expenses paid for construction of building,
(1) M/s Shivam Sanitation is a firm manufacturing cleaning tools like becom.
vipers etc. The firm decided to donate its products to 40 schools in the
different areas on the occasion of 'Safai Abhiyan' State the values that
are being reflected in the above case, (any two)
Answers
Answer:
ANSWER:
In business, Deferred Revenue Expenditure is an expense which is incurred while accounting period. And the result and benefits of this expenditure are obtained over the multiple years in the future. For example, revenue used for advertisement is deferred revenue expenditure because it will keep showing its benefits over the period of two to three years. Thus, the profit and loss account statement is prepared as a periodic statement. Let us learn more about it in greater detail.
Capital expenditures are fixed assets like property plant and equipment. Revenue expenditures are short-term expenses used in the current period or typically within one year. Capital expenditures are typically a larger amount than revenue expenditures.
Explanation:
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