A deferred expense is a cost that has been incurred but not yet consumed. This cost is termed as an asset until and unless underlying goods & services are consumed.
Deferred expenses reflect on the balance sheet as a non-current asset. Deferred expenses are rent, supplies, insurance etc.
An expense termed as a deferred expense if the consumption duration of purchased goods & services exceeds one year limit.
An expense termed as a prepaid expense if the purchased goods & services consumed within a year.