GENERAL KNOWLEDGE

Detailed explanation-1: -The outcome of this activity gives benefits to the business in coming years ahead. Hence this kind of expenses are considered as deferred revenue expenses and some part of these to be charged to profit & loss account. Was this answer helpful?

Detailed explanation-2: -Classification of Deferred Revenue Expenditure For eg. advertising expenditure. Expenditure in respect of services rendered: Such expenditure is considered as an asset as it cannot be allocated to one accounting year. For example, discount on issue of debentures, the cost of research and experiments, etc.

Detailed explanation-3: -Research and development (R&D) expenses are direct expenditures relating to a company’s efforts to develop, design, and enhance its products, services, technologies, or processes. The industrial, technological, health care, and pharmaceutical sectors typically incur the highest degree of R&D expenses.

Detailed explanation-4: -Answer: Expenditure on Research and Development (R&D) refers to all expenditure on research performed at universities and at other institutions of tertiary education, regardless of whether the research is funded from general institutional funds or through separate grants or contracts from public or private sponsors.