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What is deffered income and deffered cost?

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Question added by Syed Naseem Ali
Date Posted: 2015/03/10
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by Deleted user

Deferred income is an income which will be accrued for more than one accou ting period. Sale of motor vehicles under extended warranty is an example.

 

Deferred costs are costs incurred for which the benefit will arise in one or more accounting periods. Major advertising expenses, purchase of fixed assets.

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