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.

Learn new Accounting Terms

MILLAGE is a rate (as of taxation) expressed in mills per dollar.

BANK STATEMENT is a statement reporting all transactions in the accounts held by the account holder.

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