Question

Observe the image and identify the type of Capital/Revenue item.

विकल्प

• Revenue Receipts

• Capital Expenditure

• Deferred Revenue Expenditure

• Capital Receipts

Answer 1

Deferred Revenue Expenditure

Explanation:

Billboard advertising is a large promotional outlay whose benefits extend beyond a single accounting year; therefore, the cost is deferred and written off over future periods rather than being fully charged to the current year’s profit and loss.