Accounting; Mulitple Choice, Exspenses?

Question

Deferred expenses have _________.

A) not yet been recorded as expenses or paid

B) been recorded as expenses and paid

C) been incurred and paid

D) not yet been recorded as expenses

I chose A... im wondering if its just d though... Any sugguestions?

Answer 1

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.

Given your choices, D would be the correct answer.

Answer 2

Deferral of Expense- Cash is paid but the expense is not yet incurred.

D.

If you paid $100 in cash to the radio company in December for advertising in January, then you will have a deferral at the end of the year.