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Question

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

A
True
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B
False
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Solution

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.

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