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    Question

    There are certain expenses that may be in the nature of

    revenue but their benefit may not be consumed in the year in which such expenditure has been incurred; rather the benefit may extend over a number of years are termed as
    A Capital expenditure Correct Answer Incorrect Answer
    B Revenue expenditure Correct Answer Incorrect Answer
    C Deferred revenue expenditure Correct Answer Incorrect Answer
    D None of the above Correct Answer Incorrect Answer

    Solution

    Deferred revenue expenditure refers to certain expenses that are revenue in nature, meaning they are related to the current operating expenses of a business. However, the benefit of these expenses is not consumed entirely in the year in which they are incurred, and their benefits extend over a number of years. These expenses are treated as deferred and are amortized (expensed) over the periods during which they provide benefits.

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