PREPAID EXPENSES Definition

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PREPAID EXPENSES are 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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OAC is On Approved Credit.

SUMMARY ACCOUNT is a ledger account (such as a control account) whose balance represents the total of other account balances.

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