Prepayment: Difference between revisions
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imported>Doug Williamson (Expand definition. Sources: linked pages.) |
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An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet. | An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet. | ||
It is a prepaid expense. | |||
Revision as of 10:22, 28 July 2020
1. Banking.
The non-contractual early repayment by bank customers of, for example, fixed rate mortgages.
2. Accounting.
An amount paid in advance for a financial benefit, represented by an asset in the organisation's balance sheet.
It is a prepaid expense.
