An expenditure that is considered an asset until it becomes relevant to the...

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An expenditure carried as an asset until the amount represents a true expense for the period. For example, if a one-year insurance premium is paid three months before the end of the fiscal year, three months of the premium would be an expense in the year paid, nine months would be an expense of the following year. Thus, 9/12 of the premium would be a deferred charge. In this case it would be represented by an account called prepaid insurance. Deferred income is the opposite situation. For example, six months rent received in advance. Any amount not properly credited to the current period would be represent a liability.

An expenditure treated as an asset that carries forward until it becomes pertinent to the business at hand, e.g., advance rent payment.

Expenditure for a service that will result in the generation of future revenues. As such, they are capitalized and amortized (i.e. expensed) in future years against the revenue they generate. Inventories of materials and supplies for future internal use are to be included as Deferred Charges.

an expense of a company that will produce benefits beyond the period in which it was made.

Cost incurred for subsequent periods which are reflected as ASSETS.

Expenses incurred by a corporation to improve or promote the long-term prospects of business. They may be apportioned and charged off against earnings over a period of years.

deferred revenue deficit