Question

expenditure on research should be recognised as
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Answer 1

Answer: Deffered revenue expenditure.

Explanation: The correct answer of this statement is Deffered revenue expenditure.

In the company, research and development is done to explore new paths or to enhance processes. The consequence of this effort helps the firm in the next years. As a result, these expenditures are classified as deferred revenue expenses, with a portion of them allocated to the profit and loss account.

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