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What is Deferred Capital Expenditure / Deferred Revenue
Expenditure
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Answer / narasimhaprasad
deferred expenditure means an expense that is paid before
the corresponding benefit is fully received, such as a
prepaid insurance premium. For accounting purposes, the
expense is listed as an asset until the paid-for benefit is
obtained, and is usually prorated over a number of
subsequent accounting periods,
as deferred Capital expenditure is benefit for more than as
investment is occurred- eg: Staff sales, Allowance, Perqs,
and deferred revenue expenditure is benefit for the
requirement full filled, that purpose can't be continue for
long life eg: Traveling expenditure for camp/tour program,
meals and drinks on office purpose.
| Is This Answer Correct ? | 22 Yes | 13 No |
Answer / syed iliyas
Capital expenditure is the expenditure the benefit of it
not end for the curent financial year but it continues for
2, 3, 4-5 years. And this type of expendeture is spends to
videning the business for ex. adding additional assets like
additional machienery to develop the production and
videning the godown space to improve the storage capacity
are the best examples.
And revenue expenditure the expenditure of which benefit
ends for the running financial year like salaries, purchase
of goods for resale and payment of office expences or other
payments for which the company has recieve any service.
Finally all the capital expendeture will goes to the
balance sheet and the reveneu expenditure will goes to
profit and loss account.
| Is This Answer Correct ? | 20 Yes | 16 No |
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