What is the difference between deferred revenue expenditure and prepaid expenses? a) Accounting trea - (b) Estimation of amount Description: The basic difference between deferred revenue expenditure and prepaid expenditure is the estimation of amount. In case of prepaid expenses, the amount to be transferred to profit and loss account in the next year is known with certainty but in case of Deferred Revenue Expenditure, this amount is not known with certainty and is only estimated. - Capital and Revenue Expenditure and Receipts Interview Questions and Answers

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Question: What is the difference between deferred revenue expenditure and prepaid expenses? a) Accounting treatment b) Estimation of amount c) Benefit for more than one accounting period d) Nature of expenditure

Answer: (b) Estimation of amount
Description: The basic difference between deferred revenue expenditure and prepaid expenditure is the estimation of amount. In case of prepaid expenses, the amount to be transferred to profit and loss account in the next year is known with certainty but in case of Deferred Revenue Expenditure, this amount is not known with certainty and is only estimated.

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Question: What is the difference between deferred revenue expenditure and prepaid expenses? a) Accounting treatment b) Estimation of amount c) Benefit for more than one accounting period d) Nature of expenditure

Answer:

(b) Estimation of amount
Description: The basic difference between deferred revenue expenditure and prepaid expenditure is the estimation of amount. In case of prepaid expenses, the amount to be transferred to profit and loss account in the next year is known with certainty but in case of Deferred Revenue Expenditure, this amount is not known with certainty and is only estimated. Source: CoolInterview.com

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