Multiple choice general knowledge

Expenses on advertisement will be classified under?

  1. Capital expenditure

  2. Deferred revenue expenditure

  3. Revenue expenditure

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Advertisement expenditure is classified as deferred revenue expenditure because it provides benefits over multiple years by building brand awareness and increasing sales, even though the payment is made in the current year.

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