Definition of Prepaid expenses:
Costs such as rent, interest, insurance premium, etc., that are paid in advance of actually incurring them and (as opposed to deferred charges) are regularly recurring the normal course of a firms business.
How to use Prepaid expenses in a sentence?
- There were too many prepaid expenses and I could not afford to go over there in the future and live.
- The accountant explained to the new employee that the rent and insurance premiums are paid in advance and must be recorded in the books as prepaid expenses .
- It was nice knowing that I could use the AC and heat as much as I wanted in the building. With it being a part of my prepaid expenses , I didnt have to worry about any hidden fees if I used either way more often if I felt the need.
Meaning of Prepaid expenses & Prepaid expenses Definition