I am just wanting to see if i chose the right answer.
Deferred expenses have _________.
not yet been recorded as expenses or paid
been recorded as expenses and paid
been incurred and paid
not yet been recorded as expenses
I put that not been recorded as an expenses or paid. Am i right??
Based on the options provided, the correct answer would be "not yet been recorded as expenses."
To understand why, let's break down the meaning of deferred expenses. Deferred expenses are costs that have already been incurred by a company but have not yet been recognized as expenses on the financial statements. They are considered assets because they provide future economic benefits to the company.
Since deferred expenses have not yet been recorded as expenses, they have not been recognized on the financial statements, and therefore, they have not been paid yet.