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Question
Observe the image and identify the type of Capital/Revenue item.
Options
Revenue Receipts
Capital Expenditure
Deferred Revenue Expenditure
Capital Receipts
MCQ
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Solution
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.
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