prepaid expense


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Related to prepaid expense: Accrued Expense

Deferred Charge

An asset on a balance sheet that comes about from a business making payment for a good or service it has not yet received, but will in the near future. Prepaid expenses are expensed over time as the goods or services are received. A common example of a prepaid expense is an insurance policy. Another example is a lump sum payment for rent; if a company pays for a year's worth of rent in advance, it is recorded as a deferred charge. A deferred charge is also called a prepaid expense.

prepaid expense

An expenditure for an item that will provide future benefits. For example, a firm may pay an insurance premium only once a year, resulting in an expense that provides benefits throughout a 12-month period. The unexpired part of the premium is carried on the firm's balance sheet as a prepaid expense.
References in periodicals archive ?
A corporate prepaid expense card program helps business owners limit individual employee expenses by dollar amount and merchant category (fuel, dining, retail and so on).
The purchase of non-current assets (breeding livestock, machinery and equipment, perennial crops, buildings and improvements, and leased assets) is another type of prepaid expense. Unlike feed or insurance, non-current assets last longer than a few months or a year.
When converting from the cash basis income to accrual basis income, depreciable assets are treated essentially the same as prepaid expenses because depreciable fixed assets represent long-term prepayments (deferrals).
These contract expenses were prepaid expenses under Sec.
The acquisition of MAC includes the acquisition of accounts receivable, inventory, prepaid expenses, and machinery and equipment, and was funded under the company's newly expanded credit facility.
The acquisition of Indiana Transport included the acquisition of accounts receivable, prepaid expenses, machinery and equipment, and real estate and was funded under the Company's existing credit facility.
COMBINED STATEMENT OF FINANCIAL POSITION ASSETS CURRENT ASSETS Cash and cash equivalents $ 110,791 Investments 1,199,671 Accounts receivable, net of allowance For doubtful accounts of $1,395 33,580 Grants receivable 14,500 Inventory 63,292 Prepaid expenses 7.229 Total Current Assets $1,429,063 PROPERTY AND EQUIPMENT.
There still remains $5.0 million of cash in the escrow account, which is classified as prepaid expenses in the consolidated balance sheet as of April 30, 2012.
ASSETS Current Assets Cash and cash equivalents $346,453 Investments 7,269,653 Accounts receivable 20,547 Inventory 171,783 Prepaid Expenses 40,283 Deposits 10,452 Total Current Assets 7,359,171 Non-Current Assets Equipment, net of accumulated deprecation 21,725 Total Assets $7,330,396 LIABILITIES Accounts payable $50,238 Accrued vacation 50,679 Funds held in trust for other organization 130,319 Unearned membership fees 303,345 Other deferred revenues 7,623 Total Liabilities 592,204 NET ASSETS Unrestricted 7,288,692 Total Liabilities and Net Assets $7,880,896 Statement of Activities for the Year Ended December 31, 2007 See the accompanying notes to financial statements.
for Sale, Prepaid Expenses, Cash Investment in Growing Crop, Breeding
* Disclosures Related Primarily to the Statement of Financial Position (includes examples of investments, contributions receivable, other receivables, inventory and prepaid expenses, collections, fixed assets, liabilities and net assets)