[Solved] Huge Investment in advertisement shown in financial statements as

Huge Investment in advertisement shown in financial statements as

a) Revenue expenses

b) Capital expenses

c) Deferred revenue expenses

d) None of the above

Answer: (c) Huge Investment in advertisement shown in financial statements as deferred revenue expenses. This term refers to money spent during one accounting period with the intention of creating revenue in a future accounting period. You pay the initial expense upfront to see benefits earned in the future.

More MCQ and Answers on Auditing

  1. Management audit means
  2. Systems audit implies
  3. Internal audit means
  4. Internal audit is
  5. Detection of errors and fraud in audit is  
  6. Internal auditor is appointed and removed by the  
  7. The object of internal check is to
  8. Effective internal check system reduces
  9. Internal check is a part of
  10. The objective of internal audit is

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