deferred revenue expenditure
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Answer / nancy arora
Expenditure which is spread over a time period of more than
one year are called deferred revenue expenditure. In other
words the expenditure which are incurred for more than one
year are called deferred revenue expenditure.
| Is This Answer Correct ? | 23 Yes | 2 No |
Answer / ramesh. pm
expenditure which is incurred during an accounting period
but it is applicable further periods also is called
deferred revenue expenditure
| Is This Answer Correct ? | 7 Yes | 0 No |
Answer / b.narasimha rao
WHICH EXPENDITURE INCURRED ONE TIME AND PROVIDE BENIFITS
MORE THAN ONE YEAR THESE CALLED DEFERRED REVENUE
EXPENDITURE FOR EXAMPLE ADVERTISEMENT
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / suhasini modagi
like to add one more point i.e , The exps which are
incurred for recovery of income/revenue is called revenue
expenditure.
| Is This Answer Correct ? | 6 Yes | 3 No |
Answer / r aswin
Deferred revenue expenditure is an expenditure which results
in future income or revenue.. Expenditure is incurred for an
year and it's benefit will be enjoyed for more than one
accounting year... Heavy advertising cost is aptly used as
an example for deferred revenue expenditure
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / yugi
Deferred revenue expenditure is an expenditure which is
incurred at the time of commencement of the business. i.e.
An expenditure incurred for Heavy Advertisement.
| Is This Answer Correct ? | 3 Yes | 2 No |
An Expenditure which was incurred in an accounting period,
but for which the benefit is arised in future period is
called Deferred revenue expenditure.
Example : - Advertising Expenditure.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / roshan
deferred revenue expenditure means it is the expenses
incured in the current year in order to get returns in
future.it may write off in future fully or partly but not
in the current year.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / aarthi iyer
deferred revenue expenditure are the expenditures which
doesn't earn income from it... the best example is
advertising... expenditure for advertisement is a non
revenue expenditure otherwise known as deferred revenue
expenditure...
| Is This Answer Correct ? | 0 Yes | 1 No |
outstanding expenses are the expenses that "unpaid"at the end of the accounting period e.g.salaries rent so they all come to under nominal accounts which is debt all expenses and losses and credit all gains since they are unpaid hence they must be credited
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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
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