[amp_mcq option1=”Capital Expenditure” option2=”Revenue Expenditure” option3=”Deferred Revenue Expenditure” option4=”None of these” correct=”option2″]<\/p>\n
The correct answer is: B. Revenue Expenditure<\/strong><\/p>\n Revenue expenditure is an expense that is incurred in the current period and is not expected to benefit future periods. Advertising expenses are incurred to promote the sale of a product or service in the current period and are therefore classified as revenue expenditure.<\/p>\n Capital expenditure is an expense that is incurred in the current period and is expected to benefit future periods. Examples of capital expenditure include the purchase of land, buildings, and equipment.<\/p>\n Deferred revenue expenditure is an expense that is incurred in the current period but is not recognized as an expense in the current period. Instead, it is deferred and recognized as an expense in a future period. Examples of deferred revenue expenditure include prepaid rent and prepaid insurance.<\/p>\n In conclusion, advertising expenses are treated as revenue expenditure because they are incurred in the current period and are not expected to benefit future periods.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Capital Expenditure” option2=”Revenue Expenditure” option3=”Deferred Revenue Expenditure” option4=”None of these” correct=”option2″]<\/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-56954","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n