[amp_mcq option1=”Legal expenses incurred on the purchase of land” option2=”Expenses on a mega advertisement campaign while launching a new product” option3=”Expenses incurred on installation of a new machine” option4=”Wages paid for construction of an additional room in the building” correct=”option1″]<\/p>\n
The correct answer is A. Legal expenses incurred on the purchase of land.<\/p>\n
Deferred revenue expenditure is an expenditure that is not recognized as an expense in the current period but is instead deferred and recognized as an expense in a future period. This type of expenditure is typically incurred in connection with the acquisition of an asset that will provide benefits to the entity over a number of years.<\/p>\n
In the case of legal expenses incurred on the purchase of land, these expenses are not recognized as an expense in the current period because the land is an asset that will provide benefits to the entity over a number of years. Instead, these expenses are deferred and recognized as an expense over the useful life of the land.<\/p>\n
Expenses on a mega advertisement campaign while launching a new product, expenses incurred on installation of a new machine, and wages paid for construction of an additional room in the building are all recognized as expenses in the current period. This is because these expenses are not associated with the acquisition of an asset that will provide benefits to the entity over a number of years. Instead, these expenses are associated with the current period’s operations.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Legal expenses incurred on the purchase of land” option2=”Expenses on a mega advertisement campaign while launching a new product” option3=”Expenses incurred on installation of a new machine” option4=”Wages paid for construction of an additional room in the building” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-52939","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n