Series 79: Deferred Asset

what a prepaid expense is called on a company’s balance sheet. An example is a prepaid insurance premium. When the expense is paid, it goes on the balance sheet as a deferred asset. When what was paid for is used, the deferred asset is removed from the balance sheet. If this is expected to occur within 12 months, the deferred asset is considered a current asset. If not, it is considered a long-term asset. Compare to deferred revenues.