Prepaid Expense
Also called: prepayments, prepaid asset
A prepaid expense is cash paid before the benefit is received — annual insurance, rent paid in advance — recorded as an asset and expensed over the period it covers. It's the mirror image of deferred revenue and a direct consequence of the matching principle: the cost belongs to the months it buys, not the month the cheque cleared.
Where this is taught
Definitions are the trailer. These free levels turn Prepaid Expense into something you play — one bite-size lesson, with worked examples, a quiz and XP.