What do u mean by Deferred Revenue Expenses? Explain with
examples?
Answers were Sorted based on User's Feedback
Answer / shruti agarwal
Deferred Revenue Expenses are those expenses which are
spent in large amount in any year but the benefit of which
accrues for many years. Hence, it is written off through
profit and loss account during their benefit period. For
example, huge amount spent on advertising during launching
of a product, the benefit of which will accrue for five
years. This expenditure will be written off in the profit
and loss account of succeeding five years.
| Is This Answer Correct ? | 100 Yes | 8 No |
Answer / santy
Deferred revenue expenditure means expensed in the current
year or month but the period of benefits will be getting
over the diffrent future months or year.Example : Paid for
Advertisement expnses.If you paid Rs 12000 for a year in
the month of Jan'09 the period of benefits you are enjoying
for the whole year.
| Is This Answer Correct ? | 34 Yes | 9 No |
Answer / chandu
yes sir,deferred revenue expenses are those expenses which are incurred in initial stage and the benfit of the expense gives future benefit.
| Is This Answer Correct ? | 18 Yes | 2 No |
Answer / ramesh pk
Can deferred revenue expence be capitalized?
| Is This Answer Correct ? | 15 Yes | 5 No |
Answer / soumya
in balance sheet is it necessary to show this type of
expenditure? this type expenditures should be shown in
Miscellaneous expneses or what?
| Is This Answer Correct ? | 5 Yes | 4 No |
Answer / kapil
Deferred Revenue Expenditures are those expenditures which have been incurred in an accounting period and they do not create any assets but their benefit is spread in more then one accounting period Ex. Advertisement Cost .
Deferred expenditure refers to expenses incurred which do not apply to the current accounting period. Instead, they are debited to a 'Deferred expenditure' account in the non-current assets area of your chart of accounts. When they become current, they can then be transferred to the profit and loss account as normal.
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / swati kumari
Deferred revenue expenditure are those expenditure which are revenue in nature but there benefit will receive in future For example:- Advertisement .VAT
| Is This Answer Correct ? | 2 Yes | 1 No |
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