What is the different revenue expenditure and its treatment in accounts?
Submitted by: AdministratorThe nature of some expenses is such that though they do not create an asset
but their benefit is spread over more than one accounting period.
These are mostly non-recurring and large in amount.
In such circumstances instead of debiting the entire amount of these expenses
to Profit and Loss of the year, it may be spread over a number of years with a
proportionate amount being charged each year to P&L Account.
The portion that is still not charged to Profit and Loss is shown in the
balance sheet on the asset side after Capital Work in Progress and is called
Deferred Expenditure.
Examples are Expenses incurred to start a business, Initial marketing cost to
launch a product etc.
Submitted by: Administrator
but their benefit is spread over more than one accounting period.
These are mostly non-recurring and large in amount.
In such circumstances instead of debiting the entire amount of these expenses
to Profit and Loss of the year, it may be spread over a number of years with a
proportionate amount being charged each year to P&L Account.
The portion that is still not charged to Profit and Loss is shown in the
balance sheet on the asset side after Capital Work in Progress and is called
Deferred Expenditure.
Examples are Expenses incurred to start a business, Initial marketing cost to
launch a product etc.
Submitted by: Administrator
Read Online Cashier Job Interview Questions And Answers
Top Cashier Questions
☺ | Explain what is meant by discount eligibility of a buyer? |
☺ | Explain what is the difference between net income and free cash flow? |
☺ | Explain what is TDS and Salary TDS? |
☺ | Tell me what is meant by Deferred Revenue Expenditure? |
☺ | What is Cash Book and Pass Book? |
Top Finance and Accounts Categories
☺ | MBA Finance Interview Questions. |
☺ | Bank Teller Interview Questions. |
☺ | Capital Market Interview Questions. |
☺ | Bank Reconciliation Interview Questions. |
☺ | Cashier Interview Questions. |