Multiple choice

The expenses, benefits of which are derived for more than one year, are

  1. revenue expenditures

  2. capital expenditures

  3. deferred revenue expenditures

  4. all of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The examples of capital expenditures are machinery, furniture etc.           Revenue expenditures are those, the benefit of which is derived during the current period only. The deferred revenue expenses are paid during the current period but not written off due to the heavy expenditures; and the benefit is likely to be secured in more than one period such as advertisement, suspense.

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