Prepayments: Difference between revisions
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'' | ''Financial reporting''. | ||
Entitlements of the business as a result of paying in advance for services. | Entitlements of the business as a result of paying in advance for services. | ||
A prepayment is a form of asset, because it represents benefits (in the form of valuable services) that the business is entitled to receive in the future, in consideration for cash that the business has already paid out. | A prepayment is a form of asset, because it represents benefits (in the form of valuable services) that the business is entitled to receive in the future, in consideration for cash that the business has already paid out. | ||
Prepayments are prepaid expenses. | |||
== See also == | == See also == | ||
* [[Accrual]] | * [[Accrual]] | ||
* [[Accruals accounting]] | |||
* [[Accrued income]] | |||
* [[Assets]] | |||
* [[Balance sheet]] | |||
* [[Deferred income]] | |||
* [[Financial reporting]] | |||
* [[Prepaid expense]] | |||
* [[Prepayment]] | * [[Prepayment]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 10:41, 16 September 2020
Financial reporting.
Entitlements of the business as a result of paying in advance for services.
A prepayment is a form of asset, because it represents benefits (in the form of valuable services) that the business is entitled to receive in the future, in consideration for cash that the business has already paid out.
Prepayments are prepaid expenses.
