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Question
Heavy expenditure on advertisement is classified as ______.
Options
Revenue Expenditure
Capital Expenditure
Deferred Revenue Expenditure
Miscellaneous Expenditure
Solution
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.
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Advertisement expenditure
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₹ 10,000 paid as commission on the issue of debentures.
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Preliminary expenses.
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Advertising expenses for introduction of a new product in the market.
