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Revision as of 07:12, 6 November 2015 by Doug Williamson (Talk | contribs) (Broaden to non-financial entitlements.)

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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.

See also