Question

Deferred revenue expenditure appears in balance sheet at assets side under the heading___________.

• A. Miscellaneous Expenditure
• B. Fixed assets
• C. Current assets
• D. Loans & advances

Answer 1

Answer: (A)

Miscellaneous Expenditure

Deferred Revenue expenditure are usually large in amount and benefits are not consumed within the same accounting period. Part of the amount is shown in profit and loss account and is reduced from total expenditure and rest is shown in balance sheet. These expenditure does not result in an asset creation. That's why these are shown under the head miscellaneous expenditure.