Question

Heavy expenditure on advertisement is classified as ______.

Options

• Revenue Expenditure

• Capital Expenditure

• Deferred Revenue Expenditure

• Miscellaneous Expenditure

Answer 1

Heavy expenditure on advertisement is classified as Deferred Revenue Expenditure.

Expenditure:

Heavy advertising expenditures are classified as deferred Revenue expenditures because such expenditures in a particular accounting period are expected to benefit multiple accounting periods.