Amount spent on advertisement campaign, the benefit of which is likely to last for at least three years, is OR Rs. 1,00,000 spent on special advertising compaign will be:

The correct answer is: C. Deferred revenue expenditure

Deferred revenue expenditure is an expenditure that is incurred in the current period but is expected to benefit the business in future periods. It is usually capitalized and amortized over the period of benefit.

In the case of an advertisement campaign, the benefit of the expenditure is likely to last for at least three years. Therefore, the expenditure should be capitalized and amortized over a three-year period.

The other options are incorrect because:

• Capital expenditure is an expenditure that is incurred on the acquisition of fixed assets.
• Revenue expenditure is an expenditure that is incurred on the day-to-day running of the business.
• Contingent expenditure is an expenditure that is incurred in anticipation of a possible future event.