Accounting Dictionary
Deferred Expense
Recognizing expense in a future period.
If John paid $6,000 for 6 month’s rent, he would deduct only $1,000 each month until the six months’ rent was used up. We would say the prepaid rent was a deferred expense.
https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/deferred-expense/
Sign Up to Learn More!
Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!