Businesses make advance payments for a variety of different expenses. Any expense that is paid in advance of actually receiving the benefit of the payment is considered a prepaid expense for ...

Prepaid expenses are future expenses that have been paid in advance. These are considered assets on the balance sheet because they represent amounts that will be used up or expire in the future.

Businesses and individuals alike incur expenses. To generate revenue, entities must pay for expenses such as supplies, wages, facilities, utilities, rent, equipment, and vehicles. For corporations, ...