The question is:

Deferred expenses have _________.

choices below got to choose from

1. not yet been recorded as expenses or paid

2. been recorded as expenses and paid

3. been incurred and paid

4. not yet been recorded as expenses

The answer that I am thinking is right, is

Not yet been recorded as an expense. am i right?

I also think number 1 is also the answer

Yea that's what I am thinking now. cause this is what i found as a defintion of deferred expense

A cost that has been recorded in the accounting records and reported on the balance sheet as an asset until matched with revenues on the income statement in a later accounting period.

Yes, you are correct. Deferred expenses have not yet been recorded as expenses. To understand this concept, you can break down the term "deferred expenses."

1. Deferred: It means something is postponed or delayed. In the case of deferred expenses, it refers to expenses that have been incurred but have not yet been recognized in the financial statements.
2. Expenses: These are costs incurred by a company in the process of generating revenue.

So, deferred expenses are costs that have been incurred but have not yet been recognized as expenses on the company's financial statements. This means that they have not been recorded as expenses in the accounting records.

To confirm your answer, you can eliminate the other choices:

1. "Been recorded as expenses and paid" - This option implies that the expenses have already been recognized and paid, which contradicts the concept of "deferred."
2. "Been incurred and paid" - This option only addresses the fact that the expenses have been incurred, but it does not consider whether they have been recorded as expenses.
3. "Not yet been recorded as expenses" - This option aligns with the definition of deferred expenses and supports your answer.

Therefore, your answer, "Not yet been recorded as an expense," is correct.