EPFO 2017 PYQ with Answer — Preliminary expenses are the examples of

2017 · Q58

Preliminary expenses are the examples of

General Accounting Principles, Auditing and InsuranceRecording transactions

Acapital expenditure
Bcapital gain
Cdeferred revenue expenditure
Drevenue expenditure /expense

Explanation

Preliminary (company formation) expenses benefit several future years and are written off over time, making them deferred revenue expenditure. They are not capital expenditure since no asset is created, not a capital gain, and not a pure single-period revenue expense. Hence C.