Deferred Revenue Expenditure A deferred revenue expenditure refers to an expense incurred by a business that is expect to provide benefits over multiple accounting periods. Instead of recognizing the entire expenditure as an expense in the year it is incurred, the business spreads the cost over the period during which the benefits are… Read More »
What is a Preliminary Expense Preliminary Expense are the expenses that a company incurs before it starts its operations. These expenses are related to the formation, registration, and organization of the company, such as legal fees, accounting fees, and other administrative costs. In accounting, preliminary expenses are treated as an intangible asset and are shown on… Read More »
How are Sundry expenses treated in a balance sheet Sundry expenses are generally treated as an expense in the income statement of a business and are deducted from the revenue earned to arrive at the net income or profit for the period. They do not appear as a separate item in the balance sheet. But… Read More »