Question

Question 1
Wages of Rs. 5,00,000 paid to workers
for construction of Railway Platform
Capital Expenditure
Revenue Expenditure
Deferred Revenue Expenditure
Asset​

Answer 1

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.