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

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Deferred revenue expenditure is written off over:

A. Never

B. A number of years over which benefit is expected

C. Immediately in the year of incurrence

D. One year

Answer: Option B

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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Practice More Accountancy and Book Keeping Questions

Question #1

In budgetary control, a 'Flexible Budget' is:

A. A master budget

B. Only prepared for variable costs

C. A budget that is fixed for the period

D. A budget that changes with the level of activity

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Correct Answer: Option D

Explanation:
Flexible budget adjusts for different levels of output.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

In the Balance Sheet, 'Patents' are shown under:

A. Current liabilities

B. Fixed assets – Intangible

C. Investments

D. Current assets

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Correct Answer: Option B

Explanation:
Patents are intangible fixed assets.

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Question #3

The 'Anti-Profiteering Authority' under GST ensures:

A. Suppliers charge high prices

B. Companies do not make profit

C. Tax evasion is prevented

D. Benefits of tax rate reduction are passed to consumers

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Correct Answer: Option D

Explanation:
It ensures that reduction in tax rates or benefit of ITC is passed on as commensurate price reduction.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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