Question

Heavy advertising expenses, heavy repairs, expenditure to move the business to a more convenient location are examples of ______.

Options

• Capital expenditure

• Revenue expenditure

• Deferred revenue expenditure

• Capital receipts

Answer 1

Heavy advertising expenses, heavy repairs, expenditure to move the business to a more convenient location are examples of Deferred revenue expenditure.

Explanation:

The main examples of deferred revenue expenditure are as follows:

1. Heavy advertising expenses.
2. Heavy repairs
3. Expenses incurred to remove the business to a more convenient place.
4. Research expenses.