What is meant by defferred revenue expenditure
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Answer Posted / krishnachaitanyanellore
Before proceeding to discuss the D.R.E....
Capital expenditure is that amount of funds required to
raise infrastructural facilities,also called as fixed assets.
and, Revenue expenditure is that amount of funds used which
shall yield benefits for the current period.
Now,Deferred revenue expenditure is neither Capital
expenditure of the revenue expenditure.So, it neither
acquires any asset not yield benefits in the current period.
Examples of such type are: preliminary expenses,company
formation expenses.....
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