# What is considered a deferral?

## What is an example of deferral?

Deferral pertains to a payment made in one accounting period, but it’s not reported until the next accounting period. For example, if you made payments at the end of the year but you reported them in the new year, then that constitutes a deferral.

## What is considered a deferral?

A deferral, in accrual accounting, is any account where the income or expense is not recognised until a future date (accounting period), e.g. annuities, charges, taxes, income, etc. Deferred expense: cash has left the company, but the event has not actually occurred yet. Prepaid expenses are the most common type.

## Which one of the following is an example of an deferred expense?

Common examples of deferred expenditures include: Advertising fees. Advance payment of insurance coverageAn intangible asset cost that is deferred due to amortisation. Tangible asset depreciation costs.

## What is a deferral quizlet?

Deferral. When cash comes before the action. A deferral means that the company will postpone recognition of an expense until an item such as insurance is actually used.

## What are examples of deferrals?

Here are some examples of deferrals: