Financial and Management Accounting

1: How the deferred revenue expenses are treated in the books of accounts?
A.
Such expenses are taken to Profit and Loss Account in part every year and thus unwritten off portion may be allowed to stand in the balance sheet on the asset side.
B.
Such expenses are charged fully to the Profit and Loss Account of the year in which these are incurred.
C.

Either (A) or (B)

D.

None of the above

 

Answer : A

Explanation :

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Option: A

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