deferred charge

noun

variants or deferred asset
: an expense (as a prepaid insurance premium or an inventory of supplies) that is incurred prior to the fiscal period to which it applies, temporarily carried on the books as an asset, and subsequently charged to expense at the appropriate time

called also prepaid expense

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Cite this Entry

“Deferred charge.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/deferred%20charge. Accessed 3 Dec. 2022.

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