Expenses paid in one fiscal period but not reported as expenses until a later fiscal period are recorded as:

The concept of expenses paid in one fiscal period but not reported as expenses until a later period relates to the accounting practices concerning the timing of expense recognition. When expenses are paid in advance, they are initially recorded as assets on the Balance Sheet, specifically classified as prepaid expenses. This method aligns with the matching principle of accounting, which states that expenses should be matched with the revenues they help generate within the same period.

By recording these expenses as prepaid expenses, the accounting reflects that the benefits of these expenditures will be realized in future periods. Only when the related benefits are utilized do these prepayments transition into actual expenses on the income statement. This approach ensures that financial statements accurately depict the company's financial position and performance in accordance with Generally Accepted Accounting Principles (GAAP).

Other choices, such as deferred expenses or accrued expenses, describe different accounting scenarios that do not apply to this situation directly. Deferred expenses and accrued expenses involve different timing and recognition of expenses and liabilities, which helps clarify the distinction between these concepts and prepaid expenses. Prepaid expenses specifically indicate that the payment has been made, but the expense recognition will occur in future periods.