Asked by Morgan Jones on Jun 03, 2024

verifed

Verified

Deferred expenses that benefit a relatively short period of time are listed on the balance sheet as current assets.

Deferred Expenses

Costs that are incurred but not expensed immediately and are carried on the balance sheet as an asset until recognized.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

  • Provide a definition for current assets and outline their distinct attributes.
verifed

Verified Answer

ZK
Zybrea KnightJun 06, 2024
Final Answer :
True
Explanation :
Deferred expenses that benefit a relatively short period of time, such as prepaid rent or insurance, are listed on the balance sheet as current assets because they will be used up or expire within one year or less.