Deferred assets, or deferred charges

Bookkeeping assets representing certain kinds of outlays which will eventually be treated as expenses. They are not immediately charged to any expense account because they are more properly chargeable against future years’ operations. Include unamortized bond discount, organization expense, development expense, and prepaid advertising, insurance, and rent. These latter prepaid expenses are sometimes called prepaid assets, and the portion applicable to the next twelve months may be included in current assets.