Prepayments

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Revision as of 10:23, 28 July 2020 by imported>Doug Williamson (Expand definition. Sources: linked pages.)
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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.


See also