Expenses that have been paid in advance, but have not yet been incurred.
1. Prepaid expenses are recorded as assets on a company's balance sheet until they are used or expire. 2. When a company pays for a service or product in advance, it creates a prepaid expense that must be recognized over time.
1. "I never carry cash. I always have prepaid expenses." Kim Kardashian, Interview with The Guardian 2. "Prepaid expenses are like a savings account that you can use for future expenses." Suze Orman, The Money Class: Learn to Create Your New American Dream