What Is Deferred Revenue Expenditure? Give Some Examples. ?
Answers
HEY MATE
Deferred Revenue Expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods.
examples of deferred expenses are:
Interest costs that are capitalized as part of a fixed asset for which the costs were incurred.
Insurance paid in advance for coverage in future months.
The cost of a fixed asset that is charged to expense over its useful life in the form of depreciation.
Answer:
DEFERRED REVENUE EXPENDITURE:
1. An expenditure which is revenue expenditure in nature the benefit of which is to be derived for a subsequent period or periods is called revenue expenditure
2. The benefit usually accures for a period of two or more years
3. it is for time being differed from being charging against the income
EXAMPLE: considerable amount spent on advertising
majour repairs of plant and machinery