Deferred revenue expenditure is written off over: MCQ with Answer and Explanation

Question
Deferred revenue expenditure is written off over:
A. One year
B. Never
C. A number of years over which benefit is expected
D. Immediately in the year of incurrence
Answer: Option C
Solution (By JKSSB Mock Tests)
Deferred revenue expenditure like heavy advertisement is written off over a period of benefit, typically 3-5 years.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Integrated Tax' (IGST) is levied and collected by:
A. Both centre and state
B. State government
C. Local bodies
D. Central government
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Correct Answer: Option D

Explanation:
IGST is levied by the central government on inter-state supplies and imports.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is considered an investing activity in a cash flow statement?
A. Issue of shares
B. Payment of dividend
C. Purchase of machinery
D. Cash received from customers
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Correct Answer: Option C

Explanation:
Investing activities involve the acquisition and disposal of long-term assets and other investments not included in cash equivalents.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which of the following is NOT a component of the Indian Financial System?
A. Financial Auditors
B. Financial Instruments
C. Financial Markets
D. Financial Institutions
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Correct Answer: Option A

Explanation:
The Indian Financial System comprises financial institutions, markets, instruments, and services. Auditors are professionals who verify financial data, not a structural component of the financial system itself.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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