Define: Prepayment

UK Accounting Glossary

Definition: Prepayment


Quick Summary


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



Full Definition



Prepayment FAQ's