Deferred expenses are recorded as assets on a balance sheet. Accountants consider deferred expenses to be assets because they will provide the company some good or service at a later point in time.

Insurance expense does not go on the balance sheet because it reflects a specific amount you have spent, rather than an asset or liability at a particular moment in time.

The P&L reflects income and expenses over time, but the balance sheet shows the company's financial position within a single fixed moment," explains Courtney Barbee, owner and COO at The Bookkeeper.

Accumulated depreciation is the total amount of depreciation expense recorded for an asset on a company's balance sheet. It is calculated by summing up the depreciation expense amounts for each ...

A balance sheet shows a company's financial health at a specific point in time, its assets, liabilities and shareholders' equity. Skip to content. MEDIA; ... expenses and cash flows.