What is meant by Deferred Revenue Expenditure? Give one example.

1.	What is meant by Deferred Revenue Expenditure? Give one example.
Answer» Deferred Revenue Expenditure is the expenditure of revenue nature which gives benefits for more than one accounting period e. g. heavy advertisement expenditure on launching a new product is likely to give benefit for more than one accounting period. Example: Heavy expenditure on advertisement for launching a new product whose benefits will be available for over a period of one year.

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Deferred Revenue Expenditure is the expenditure of revenue nature which gives benefits for more than one accounting period e. g. heavy advertisement expenditure on launching a new product is likely to give benefit for more than one accounting period.

Example: Heavy expenditure on advertisement for launching a new product whose benefits will be available for over a period of one year.

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What is meant by Deferred Revenue Expenditure? Give one example.

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