Editing Deferral (section)

==Deferred charge==
A '''deferred charge''' is a [[cost]] recorded in a later [[accounting period]] for its expected future benefit, or to comply with the [[matching principle]], which matches costs with [[revenue]]. Deferred charges include costs such as those related to [[startup]] activities, obtaining long-term [[debt]], or running major [[advertising]] campaigns. These are carried as non-current [[assets]] on the [[balance sheet]] until they are [[amortized]].

Deferred charges typically extend over five years or more and occur less frequently than '''prepaid expenses''', such as insurance, interest, or rent. Financial [[ratios]] often exclude deferred charges from total assets because they lack physical substance (i.e., they do not generate [[cash]] directly) and cannot be used to reduce total [[Liability (financial accounting)|liabilities]].<ref>{{Cite web |title = Deferred Charge |publisher = BusinessDictionary.com |year = 2010 |url = http://www.businessdictionary.com/definition/deferred-charge.html |accessdate = May 15, 2010 |archive-date = June 15, 2010 |archive-url = https://web.archive.org/web/20100615060706/http://www.businessdictionary.com/definition/deferred-charge.html |url-status = dead }}</ref>