Underwriting commission is classified as

Capital Expenditure

Capital loss

Deferred Revenue Expenditure

Capitalized Expenditure

The correct answer is: C. Deferred Revenue Expenditure

Underwriting commission is a fee paid to an investment bank for underwriting a security offering. It is classified as a deferred revenue expenditure because it is not recognized as revenue until the securities are sold.

A capital expenditure is an expenditure that is made to acquire or improve a long-term asset. A capital loss is a loss that occurs when a capital asset is sold for less than its original cost. A capitalized expenditure is an expenditure that is added to the cost of an asset and is not recognized as an expense until the asset is sold or disposed of.

Here is a more detailed explanation of each option:

Capital Expenditure

A capital expenditure is an expenditure that is made to acquire or improve a long-term asset. Long-term assets are assets that are expected to be used for more than one year. Examples of long-term assets include land, buildings, equipment, and intangible assets.

Capital expenditures are recorded as an asset on the balance sheet. The cost of a capital expenditure is depreciated over its useful life. Depreciation is a process of allocating the cost of an asset to expense over its useful life.

Capital Loss

A capital loss is a loss that occurs when a capital asset is sold for less than its original cost. Capital assets are assets that are held for investment or for the production of income. Examples of capital assets include stocks, bonds, and real estate.

Capital losses are reported on Schedule D of Form

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A deferred revenue expenditure is an expenditure that is made in one accounting period but is not recognized as revenue until a future accounting period. Deferred revenue expenditures are recorded as a liability on the balance sheet.

Deferred revenue expenditures are often used to account for prepaid expenses. Prepaid expenses are expenses that are paid in one accounting period but are not incurred until a future accounting period. Examples of prepaid expenses include insurance premiums, rent, and advertising costs.

Deferred revenue expenditures are amortized over the period of time to which they relate. Amortization is the process of allocating the cost of an asset to expense over its useful life.

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