Costs that benefit future periods are reported as assets.
BT: Knowledge

Name: Costs that benefit future periods are reported as assets. BT: Knowledge
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This is the basic principle of accrual accounting, where costs that are incurred in the current period but will benefit future periods are recognized as assets on the balance sheet. Examples include prepaid expenses, deferred revenue, and long-term investments.

Costs That Benefit Future Periods Are Reported as Assets