Deferrals refer to the practice of postponing an obligation or payment to a later date. This can apply to various financial contexts, such as taxes or loan repayments. For example, a taxpayer may choose to defer their tax payment until the following year, allowing them to manage their cash flow more effectively. In accounting, deferrals are used to recognize revenue or expenses at a later time than when the cash is received or paid. This ensures that financial statements accurately reflect a company's performance over a specific period. Common examples include deferred revenue and deferred expenses.