[amp_mcq option1=”Deferred Revenue Expenditure” option2=”Income accrued but not received” option3=”Dividend declared but not paid” option4=”Discount on issue of debentures” correct=”option4″]
The correct answer is: D. Discount on issue of debentures
Deferred revenue expenditure is an expenditure that is incurred in the current period but will benefit the company in the future. It is a non-current asset and is shown on the balance sheet as a deduction from the gross amount of the asset. It is not an income item and will not have a credit balance.
Income accrued but not received is an income that has been earned but not yet received. It is a current asset and is shown on the balance sheet as an asset. It is not an expense item and will not have a credit balance.
Dividend declared but not paid is a dividend that has been declared by the board of directors but has not yet been paid to the shareholders. It is a current liability and is shown on the balance sheet as a liability. It is not an income item and will not have a credit balance.
Discount on issue of debentures is a discount that is offered to investors on the issue of debentures. It is a non-current liability and is shown on the balance sheet as a liability. It is an expense item and will have a credit balance.