Heavy advertisement cost is paid for the promotion of company's new product launch is classified under -

Question

Revenue Expenditure or Deferred Revenue Expenditure?

Deleted user · Answer

The portion of the cost which is applicable to the current period shal be classified under Revenue Expenditure.

Major amount shall be classified under Deferred Revenue Expenditure since it is likely to benefit in future periods.

Sara Naeem · Answer

Deferred Revenue Expenditure.

Mian Muhammad Naeem Jan · Answer

Defered Reven Expe

Divyesh Patel · Answer

The correct answer is Deferred Revenue Expenditure.

Hiras Kariyattil Muthunny · Answer

Deferred revenue expenditure - is the current accounting practice.