Question

Heavy expenditure incurred on advertisement at the time of introducing a new product is a Deferred Revenue Expenditure.

• A. True
• B. False

Answer 1

The correct option is A True

Heavy advertisement expenditure is incurred on introduction of a new product in the market. This is a deferred revenue expenditure in nature as the benefit is enjoyed by the business over a number of years, but no asset of permanent nature is acquired.