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Question

Preliminary expenses are an example of _____________.

A
Revenue expenditure
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B
Capital expenditure
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C
Deferred revenue expenditure
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D
All of these
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Solution

The correct option is A Deferred revenue expenditure
Preliminary expenses are those expenses which are incurred before the incorporation and commencement of the business. These are treated as deferred revenue expenditure. Examples are company incorporation expenses, logo expenses etc.

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