Prepaid Expenses

The Prepaid Expenses are.

amounts that are paid before the period they cover. Such expenses often include insurance and rent. Prepaid expenses are not deductible until the appropriate period.

See also other Tax Terms and Definitions in U.S.A.

economic performance rule.

Description and Definition of Prepaid Expenses

Amounts paid in advance to a vendor or creditor for goods and services. Prepaid expenses are generally treated as a current asset because payment was made in advance and the goods or services are have not been delivered.

Resources

See Also

Further Reading

• Prepaid Expenses in the West's Tax Law Dictionary
• Prepaid Expenses in “A Dictionary of Taxation”