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10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above?
Most Upvoted Answer
10,000 were spent on advertising for the introduction of a new product...
Revenue Expenditure
Explanation:
Revenue expenditure is an expense incurred in the normal course of business operations. It is an expense that is incurred in one accounting period and is not expected to generate any future economic benefits beyond that period. In this case, the advertising cost of 10,000 is an expense that is incurred in the current accounting period and is expected to generate revenue for the next four years. However, the benefit is not a guaranteed one, as the success of the product in the market is unpredictable. Therefore, it is considered a revenue expenditure as it is not expected to generate any future economic benefits beyond the current accounting period.
To summarize, the 10,000 spent on advertising is a revenue expenditure as it is an expense incurred in the normal course of business operations and is not expected to generate any future economic benefits beyond the current accounting period.
Explanation:
Revenue expenditure is an expense incurred in the normal course of business operations. It is an expense that is incurred in one accounting period and is not expected to generate any future economic benefits beyond that period. In this case, the advertising cost of 10,000 is an expense that is incurred in the current accounting period and is expected to generate revenue for the next four years. However, the benefit is not a guaranteed one, as the success of the product in the market is unpredictable. Therefore, it is considered a revenue expenditure as it is not expected to generate any future economic benefits beyond the current accounting period.
To summarize, the 10,000 spent on advertising is a revenue expenditure as it is an expense incurred in the normal course of business operations and is not expected to generate any future economic benefits beyond the current accounting period.
Community Answer
10,000 were spent on advertising for the introduction of a new product...
Answer - (c) Deferred revenue expenditure
Explanation- Advertisement expenses are done and supposed to increase the sell of that products in upcoming years .
It is a fictitious asset for the organisation and to bhi shown in the asset side of the balance sheet .
Explanation- Advertisement expenses are done and supposed to increase the sell of that products in upcoming years .
It is a fictitious asset for the organisation and to bhi shown in the asset side of the balance sheet .
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10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above?
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10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above?.
10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about 10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 10,000 were spent on advertising for the introduction of a new product in the market, the benefit of which wiII be effective during four years. (a) Revenue expenditure (b) CapitaI expenditure (c) Deferred revenue expenditure (d) None of the above?.
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