The correct answer is B. Revenue expenditure.
Revenue expenditure is an expense that is incurred in the current period and is not expected to benefit future periods. This type of expenditure is usually recorded as an expense on the income statement and is not capitalized.
In the case of an advertisement campaign, the benefit of the expenditure is likely to last for three years. This means that the expenditure is not expected to be fully consumed in the current period and should therefore be classified as a revenue expenditure.
Capital expenditure is an expense that is incurred in the current period and is expected to benefit future periods. This type of expenditure is usually capitalized and is not recorded as an expense on the income statement.
Deferred revenue expenditure is a type of revenue expenditure that is deferred until a future period. This is done when the benefit of the expenditure is not expected to be realized in the current period. Deferred revenue expenditure is usually recorded as a liability on the balance sheet.
Contingent expenditure is an expenditure that is not certain to be incurred. This type of expenditure is usually not recorded in the financial statements.
I hope this explanation is helpful. Please let me know if you have any further questions.