What is deferred revenue expenditure and journal entry ?

Question

Accepted Answer

Deferred revenue expenditure is an expense that is incurred in one accounting period but is recognized over a period of time.

Deferred revenue expenditure is an expense that benefits multiple accounting periods.
It is recorded as an asset on the balance sheet and amortized over the periods that benefit from it.
Journal entry for deferred revenue expenditure involves debiting the asset account and crediting the expense account.
Example: If a company spends money on advertising that will benefit future periods, it is considered a deferred revenue expenditure.

Accepted Answer

Deferred revenue expenditure refers to those expenses which will be incurred in the current accounting period but the benefits of the expenses will be applicable over several accounting periods. Exp:- the cost of an advertising campaign.

What is deferred revenue expenditure and journal entry ?

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