Define: Prepayment

UK Accounting Glossary

Definition: Prepayment


Quick Summary of Prepayment


An amount paid for in advance for an benefit to the business, such as insurance premiums or rent in advance. Initially recognised as an asset, then transferred to expense in the period when the benefit is enjoyed. (Also called a prepaid expense.)



What is the dictionary definition of Prepayment?

Dictionary Definition


A payment in advance.


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Full Definition of Prepayment



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Prepayment FAQ's



Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/prepayment/
Modern Language Association (MLA):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 15, 2019 https://payrollheaven.com/define/prepayment/.
Chicago Manual of Style (CMS):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/prepayment/ (accessed: September 15, 2019).
American Psychological Association (APA):
Prepayment. PayrollHeaven.com. Retrieved September 15, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/prepayment/

Definition Sources


Definitions for Prepayment are sourced/syndicated from:


This glossary post was last updated: 23rd December 2018.