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.)



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Page URL
https://payrollheaven.com/define/prepayment/
Modern Language Association (MLA):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 21, 2019 https://payrollheaven.com/define/prepayment/.
Chicago Manual of Style (CMS):
Prepayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/prepayment/ (accessed: July 21, 2019).
American Psychological Association (APA):
Prepayment. PayrollHeaven.com. Retrieved July 21, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/prepayment/

Definition Sources


Definitions for Prepayment are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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