Prepayments: Difference between revisions
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imported>Doug Williamson (Expand definition. Sources: linked pages.) |
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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. | |||
Revision as of 10:23, 28 July 2020
Accounting.
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.
