Prepaid expenses

Prepaid expenses,

Definition of Prepaid expenses:

  1. 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?

  1. There were too many prepaid expenses and I could not afford to go over there in the future and live.
  2. 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 .
  3. 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