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Question
What is meant by deferred revenue expenditure?
Short Note
Solution
- An expenditure, which is revenue expenditure in nature, the benefit of which is to be derived over a subsequent period or periods is known as deferred revenue expenditure.
- The benefit usually accrues for a period of two or more years. It is, for the time being, deferred from being charged against income. It is charged against income over a period of certain years.
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Revenue and Deferred Revenue Expenditure
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