prepaid expense

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Related to deferral: Tax deferral

Deferred Charge

An asset on a balance sheet that comes about from a business making payment for a good or service it has not yet received, but will in the near future. Prepaid expenses are expensed over time as the goods or services are received. A common example of a prepaid expense is an insurance policy. Another example is a lump sum payment for rent; if a company pays for a year's worth of rent in advance, it is recorded as a deferred charge. A deferred charge is also called a prepaid expense.

prepaid expense

An expenditure for an item that will provide future benefits. For example, a firm may pay an insurance premium only once a year, resulting in an expense that provides benefits throughout a 12-month period. The unexpired part of the premium is carried on the firm's balance sheet as a prepaid expense.
References in periodicals archive ?
The FDA's decision to take steps to recommend a change in the blood donation deferral for men who have had sex with men (MSM) from a lifetime deferral to a one-year deferral is consistent with the position of our organizations that the current lifetime deferral is unwarranted.
With the Seniors Property Tax Deferral program, we re offering seniors a way to free up funds that otherwise would have been spent on property taxes.
The subsequent deferral election may not go into effect until at least 12 months after the election is made; and
The subsequent deferral election rules may apply if an employer or employee elects to defer compensation that would otherwise be a short-term deferral under Regs.
31 to cancel a deferral of income to future years or to terminate their participation in the plan.
This tax deferral may be lost if your beneficiary designation is not properly planned.
The budget folds the Senior Citizens' Property Tax Assistance Program for elderly, blind and disabled homeowners - which provides payments up to $473 - and merging it with a separate program that provides tax deferrals, rather than rebates.
1) examine all benefit plans to determine whether they will be affected by the change in the law; (2) identify which provisions of those plans may be affected; (3) identify areas that may be affected by transition rules; (4) develop a plan-modification strategy; (5) obtain board approvals, if necessary; (6) assess and revise employee communications, including deferral election materials; (7) obtain elections for 2005 deferrals by the end of 2004; (8) coordinate plan changes with third-party administrators.
Safety experts consider many of these rules, known as deferrals, nonsensical, and they warn that the restrictions are reducing the donor base so drastically that hospitals would not have enough blood in the event of a large-scale crisis.
The lukewarm utilization was principally due to the plan's low deferral limit ($7,500) and the fact that the ability to defer compensation under it was reduced by any deferral made under either Code [section] 403(b) or [section] 401(k).
S&P also said deferral of interest payments by an insurer on its kikin debt would not immediately affect its long-term counterparty or financial strength ratings.
Whether to continue the deferral period or recommence payment of interest will be decided prior to that date.