What Are Deferred Assets In Accounting

Deferred Assets are the Expenditures or Expenses Paid In Advance whose benefits are still not received in the current accounting period. Examples are Prepaid Expenses such as Prepaid Rent, etc.

These include both short-term expenditures and long-term expenditures. If expenditures are paid for the period of one year, then these are short-term assets and if expenditures are paid for more than one year, then these expenditures are known as long-term assets where payments can be made for more than one year.