From ACT Wiki
Revision as of 10:41, 16 September 2020 by Doug Williamson (Talk | contribs) (Update title.)

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

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.

See also