Write three features of deferred revenue expenditure.

1.	Write three features of deferred revenue expenditure.
Answer» 1. It is a revenue expenditure, the benefits of which is to be derived over a subsequent period or periods. 2. It is not fully written off in the year of actual expenditure. It is written off over a period of certain years. 3. The balance available after writing off (i.e., Actual expenditure – Amount written off) is shown on the assets side balance sheet.

Answer»

1. It is a revenue expenditure, the benefits of which is to be derived over a subsequent period or periods.

2. It is not fully written off in the year of actual expenditure. It is written off over a period of certain years.

3. The balance available after writing off (i.e., Actual expenditure – Amount written off) is shown on the assets side balance sheet.

Discussion