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    Question

    Rs 9,00,000 incurred on advertising to introduce a new

    product line is a:
    A capital expenditure Correct Answer Incorrect Answer
    B revenue expenditure Correct Answer Incorrect Answer
    C deferred capital expenditure Correct Answer Incorrect Answer
    D deferred revenue expenditure Correct Answer Incorrect Answer

    Solution

    Deferred revenue expenditure refers to expenses that are incurred during an accounting period but are spread over multiple accounting periods. They are initially treated as an asset and then gradually recognized as expenses over time.

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