Asked by
Ashika Priya
on Oct 28, 2024Verified
Deferred expenses are initially recorded as assets and when they are later used,expenses will increase and assets will decrease.
Deferred Expenses
Assets created when purchased in the past before being used to generate revenues; need to be adjusted at the end of the period to reflect the amount of expense incurred by using the assets over time.
Assets
Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.
- Familiarize yourself with the fundamentals and goals of accrual and deferral techniques in accounting.
- Develop an understanding of and engage in the application of appropriate journal entries for various adjustments in accounting, which include accruals, deferrals, and adjustments for prepaid expenses.
Verified Answer
SS
Learning Objectives
- Familiarize yourself with the fundamentals and goals of accrual and deferral techniques in accounting.
- Develop an understanding of and engage in the application of appropriate journal entries for various adjustments in accounting, which include accruals, deferrals, and adjustments for prepaid expenses.
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