What is a deferred cost?

Sophia Turner | 2023-05-07 23:44:35 | page views:1800
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Zoe Gonzales

Studied at the University of São Paulo, Lives in São Paulo, Brazil.
A deferred cost is a cost that you have already incurred, but which you will not charge to expense until a later reporting period. In the meantime, it appears on the balance sheet as an asset. The reason for deferring recognition of the cost as an expense is that you have not yet consumed the item.
2023-05-07 23:44:35

Lucas Martinez

QuesHub.com delivers expert answers and knowledge to you.
A deferred cost is a cost that you have already incurred, but which you will not charge to expense until a later reporting period. In the meantime, it appears on the balance sheet as an asset. The reason for deferring recognition of the cost as an expense is that you have not yet consumed the item.
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