A. Expenses in connection with issue of equity shares
B. Preoperative expenses
C. Heavy advertising expenses to introduce a new product
D. Legal expenses incurred in defending a suit for breach of contract to supply goods
D. Deferred revenue expenditure is a revenue expenditure whose benefit lasts for more than one accounting periods and is therefore written off during the periods over which the benefit lasts(However, AS 26 requires that Deferred revenue expenditure is expenses wholly in the year of incurrence). Legal expenses incurred in defending a suit for breach of contract for supply of goods does not satisfy the prerequisites of a deferred revenue expenditure.
- Which of the following account with normal balance is shown at the credit side of a trial balance?
- A. Cash account B. Bank account C. Equipment account D. Accrued expenses account...
- Liabilities are which of the following?
- A. Resources B. Obligations C. Future benefits D. Expenses...
- Which of these transactions will not be recorded in cash book?
- A. Cash received from debtors B. Cash paid to creditors C. Salary remained outstanding D. Cash deposited with bank...
- Debit balance as per bank pass book mean_____________?
- A. Surplus cash B. Bank Overdraft C. Terms deposits with bank D. None of these...
- Under the direct write-off method of recognizing a bad debt expense. Which of the following statements is/are true?
- A. The bad debt expense is not matched with the related sales B. Revenue is overstated in the year of sales C. It violates the matching principle of accounting D. All of the above...