Question

Which of the following is/are deferred revenue expenditure?

• A. Research & development expenses
• B. Heavy advertisement expenditure incurred in introducing a new line or product
• C. Preliminary expenses
• D. All of the above

Answer 1

Answer: (D)

All of the above

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.

Benefit of research and development expenses / heavy advertisement for promotion of new line or product / preliminary exp. are type of deferred revenue expenses which benefits are to be derived in multiple future accounting periods.