What is the meaning of PREPAID EXPENSES?

amounts that are paid in advance to a vender or creditor for goods and services. Typically, insurance premiums are paid in advance of the coverage contained in the policy.' PREPAID EXPENSES' is a Current Asset for your business. This is because you have paid for something and someone owes you the service or the goods for which you prepaid.

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APABarry Goldsmith. (2010). prepaid expenses. Retrieved September 27, 2026, from http://smartdefine.org/prepaid_expenses/definitions/1160964
ChicagoBarry Goldsmith. 2010. "prepaid expenses" http://smartdefine.org/prepaid_expenses/definitions/1160964 (accessed September 27, 2026).
HarvardBarry Goldsmith 2010, prepaid expenses, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/prepaid_expenses/definitions/1160964>.
MLABarry Goldsmith. "prepaid expenses" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/prepaid_expenses/definitions/1160964>