Forums
Back
Capital VS deferred revenue expenditure
Accountancy
The benefit of which expenditure is not exhausted within a year it is incurred and is extended to future years. State it.
Answers (5)
Capital expenditure: Any expenditure related to capital nature items and capitalized on that year. e.g Purchase an asset incl. of insurance-insurance should be capitalized. Deferred revenue expenditure: Expense related to more than one year with enjoying benefits and incurred in P&L over the period. e.g Prepaid expense.
Kamal Kumar
Capital expenditure: Any expenditure related to capital nature items and capitalized on that year. e.g Purchase an asset incl. of insurance-insurance should be capitalized. Deferred revenue expenditure: Expense related to more than one year with enjoying benefits and incurred in P&L over the period. e.g Prepaid expense.
So is both of them, the right answers?
Your Reply