[amp_mcq option1=”Heavy advertisement expenditure” option2=”Expenses incurred in shifting the business to convenient premises” option3=”Preliminary expenses” option4=”Depreciation on fixed assets” correct=”option4″]<\/p>\n
The correct answer is D. Depreciation on fixed assets.<\/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 is because the expenditure is expected to provide benefits to the company in future periods.<\/p>\n
Heavy advertisement expenditure is an example of deferred revenue expenditure because it is expected to provide benefits to the company in future periods by increasing sales. Expenses incurred in shifting the business to convenient premises is also an example of deferred revenue expenditure because it is expected to provide benefits to the company in future periods by improving efficiency and productivity. Preliminary expenses are another example of deferred revenue expenditure because they are incurred in connection with the formation of a company and are expected to provide benefits to the company in future periods.<\/p>\n
Depreciation on fixed assets is not an example of deferred revenue expenditure because it is not an expenditure that is not recognized as an expense in the current period. Depreciation is an expense that is recognized in the current period in accordance with the matching principle. The matching principle requires that expenses be recognized in the same period as the revenues that they generate. Depreciation is an expense that is recognized in the current period because it is an expense that is incurred in order to generate revenues in the current period.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Heavy advertisement expenditure” option2=”Expenses incurred in shifting the business to convenient premises” option3=”Preliminary expenses” option4=”Depreciation on fixed assets” correct=”option4″]<\/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-54866","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n