Question

what do you mean by deferred revenue expenditure . give one example .

Answer 1

Deferred Revenue Expenditure is anexpenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods.

An example of deferred revenue is when a cleaningcompany accepts the prepayment of its monthly fee for its services in advance for a whole year. The company agrees to provide cleaningservices for that year.

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