Question

Deferred expenses are also called prepaid expenses.

True

False

Answer 1

Answer:True

Explanation

It is true deferred expenses are also called prepaid expenses.

Since the prepaid expenses are the  current assets which have paid in advance and recorded as an asset in the balance sheet

If the expense paid in advance and involves for many years is  called deferred expenses.

the deferred expenses is the expenses that has been already incurred but not used (consumed) , if it is used or consumed is called prepaid expenses and recorded as current asset in the balance sheet