What are prepaid expenses?
submitted by R HARIHARAN

Ahmed

It's an expenses that we pay before the service is needed.

Muhammad Aamir Jahangir

Expense paid before its utilization, like office rent paid in advance, license fee paid in advance, or government tax paid in advance.

binoy

Best example is prepaid mobile recharge. The expenses which we pay in advance is called a prepaid expense.

Vernon K Dzwairo

These are expenses that have been paid for in advance. For example, if rent is $500 per month and the compony decides to pay $700, the extra $200 becomes the prepayment.

Shuaib

Prepaid expenses: This is the payment for a service in advance of its use. When the payment is made in respect of a period beyond the date of account it is referred to as a prepaid expense.

Ty Malone

A prepaid expense is more like an investment. The company pays for something, which makes it an expense, but receives something in return in the near future. (ex. insurance)

Nova Caine

These are expenses that have been paid for in advance. For example, if rent is $500 per month and the compony decides to pay $700, the extra $200 becomes the prepayment.

ABEL H/GIORGIS

It is an asset that is paid in advance but still not expired.