S1: Deferred revenue expenditure is a capital expenditure. S2: Deferred revenue expenditure is a revenue expenditure spread over multiple years. Which statement(s) is/are correct?
Explanation:
Deferred revenue expenditure is essentially a revenue expenditure (like heavy advertising) whose benefit extends over multiple years, so it is written off over those years. It is not a capital expenditure. S1 is incorrect, S2 is correct.
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