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

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Question added by Jerry Easow Thomas , General Accountant , Masar Medical
Date Posted: 2014/07/31

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 Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

Deferred Revenue Expenditure.

Mian Muhammad Naeem Jan
by Mian Muhammad Naeem Jan , Chief Finance Officer , Management Company

Defered Reven Expe

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

The correct answer is Deferred Revenue Expenditure.

Hiras Kariyattil Muthunny
by Hiras Kariyattil Muthunny , Chief Marketing Officer , Smart Consulting Solutions Pte Ltd

Deferred revenue expenditure - is the current accounting practice. 

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