Deferred Expense

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.

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!