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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
Solution
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:
- Heavy advertising expenses.
- Heavy repairs
- Expenses incurred to remove the business to a more convenient place.
- Research expenses.
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