wiz-icon
MyQuestionIcon
MyQuestionIcon
2
You visited us 2 times! Enjoying our articles? Unlock Full Access!
Question

Deferred revenue expenditure also results in a benefit which will accrue in future period but generally for__________.

A
3 or 5 months
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
3 or 5 years
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
C
1 year
No worries! We‘ve got your back. Try BYJU‘S free classes today!
D
10 or 11 months
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is C 3 or 5 years

Deferred revenue expenditure is an expenditure which is revenue in nature and incurred during an accounting period, but its benefits are to be derived in multiple future accounting periods.

These expenses are usually large in amount and benefits are not consumed within the same accounting period. Part of the amount is shown is shown in profit and loss account and is reduced from total expenditure and rest is shown in balance sheet.


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
GAAP and Basic Accounting Concepts
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon