Question

An expenditure is Deferred revenue expenditure because ______.

Options

• Amount spent to buy assets.

• The benefit of such expenditure is enjoyed by the business over a number of years.

• Amount spends in investment.

• None of the above.

Answer 1

An expenditure is Deferred revenue expenditure because Amount spends in investment.

Explanation:

Deferred Revenue Expenditure is an expenditure that is revenue in nature and incurred during an accounting period, however, related benefits are to be derived in multiple future accounting periods.