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Definitions for "deferred charge"
Keywords:  expenditure, apportioned, revenue, rent, pertinent
Related Terms: Deferred charges, Prepaid expense, Expenditure, Revenue expenditure, Expense, Deferred income, Accrued expenses, Expenses , Expenditures, Accrual method, Income, Accrual, Matching principle, Other expenses, Depreciation expense, Deferred revenue, Expenses , Net income, Residual income, Gross annual income, Accrual basis, Accrual method of accounting, Expenditures, Capitalize, Annual income, Net profit, Other income, Outlays, Operating expenses, Deficit, Earnings, Discretionary income, Profit & loss statement, Net loss, Expenditure, Net earnings, Accrued income, P&l, Deferred taxes, Gross monthly income, Unearned income, Revenue, Gross earnings, Net operating loss, Revenue, Accruals, Loss, Profit, Capital expenditures, Accrued expense
An expenditure that is considered an asset until it becomes relevant to the...
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accountingcoach.com
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.
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