Prepaid Expense

Prepaid Expense,

Prepaid Expense Meanings:

Prepaid expenses are a type of balance sheet asset that is derived from the payment for goods or services received by companies. Initially, deferred items are recorded as an asset, but their value is recorded in the income statement over time as expenses. Unlike traditional fees, companies receive a certain amount of prepaid fees in different billing periods.

Definition of Prepaid Expense: Expenses incurred in obtaining economically viable goods or services during the operational cycle in the process of revenue generation.

Literal Meanings of Prepaid Expense

Prepaid:

Meanings of Prepaid:
  1. Paid or prepaid.

Sentences of Prepaid
  1. The best thing about prepaid credit cards is that you can't spend more than you set.

Expense:

Meanings of Expense:
  1. The price of something, the money spent on something.

Sentences of Expense
  1. This year, up to 17,500 investments can be received

  2. We order apparel at a high price

Synonyms of Expense

price, cost