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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Synonyms For Prepayment


down payment, advance payment, prepaid, advance, pre-payment


Cite Term


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Page URL
https://payrollheaven.com/define/prepayment/
Modern Language Association (MLA):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 17, 2020 https://payrollheaven.com/define/prepayment/.
Chicago Manual of Style (CMS):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/prepayment/ (accessed: February 17, 2020).
American Psychological Association (APA):
Prepayment. PayrollHeaven.com. Retrieved February 17, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/prepayment/

Definition Sources


Definitions for Prepayment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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