deferred

Examples of deferred in the following topics:

• Drivers of Market Interest Rates

  • Deferred consumption: When money is loaned the lender delays spending the money on consumption goods.
  • This rate incorporates the deferred consumption and alternative investments elements of interest.

• Risk Adjusting for the Time Horizon

  • A real option itself is the right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project.
  • Some examples include Inflation or deferment options, where management has flexibility as to when to start a project.

• Assets

  • A deferred expense or prepayment, prepaid expense (plural often prepaids), is an asset representing cash paid out to a counterpart for goods or services to be received in a later accounting period.
  • For example, if a service contract is paid quarterly in advance, at the end of the first month of the period two months remain as a deferred expense.
  • In the deferred expense, the early payment is accompanied by a related, recognized expense in the subsequent accounting period, and the same amount is deducted from the prepayment.

• The Check Clearing Proces

  • The Federal Reserve float is the difference between cash items in the process of collection (CIPC) and deferred availability cash items (DACI), and it is always positive.

• Effects of GAAP on the Income Statement

  • For example, rent or other revenue collected in advance, estimated expenses, and deferred tax liabilities and assets may create timing differences.

• How Business Activities Affect the Balance Sheet

• Balance Sheets

• Pro Forma Balance Sheet

• Answers to Chapter 1 Questions

  • Money becomes a medium of exchange, store of value, unit of account, and standard of deferred payment.

• Answers to Chapter 12 Questions

  • Treasury deposits, foreign and other deposits, Deferred Availability Cash Items (DACI), Federal Reserve float.