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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.
Solution
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.
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