Question

What is deferred revenue expenditure? (Answer in one sentence)

Answer 1

Deferred revenue expenditure is a expense but revenue in nature which is incurred during an accounting year but its benefit are to derived over the number of following accounting period.


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Answer 2

Deferred revenue expenditure refers to any expense that generates a delayed profit.

* Such expenses are made mostly during the accounting period.

* It yields a profit or benefit over a long period of time.

* Examples are advertisement costs, renting a space for setting up a business enterprise, asset depreciation cost, startup expenses, etc.