What is meant by deferred charges?
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Last modified 7/5/2022 2:20:37 AM EST |
Added by ExpressTaxExempt Team
Deferred charges are long-term prepaid expenses carried as assets on the balance sheet until used. They usually emerge from a business paying for goods or services that have not been received yet.
Suppose if you are prepaid an amount by an organization to deliver goods for them in the future, the paid amount can be considered deferred charges even before the goods have been delivered yet.