an expense you pay before it is due

Includes supplies on hand and rent paid for the period to come.

The payment of an expense in advance. (example: Insurance is usually paid for a full year).

An expense paid in advance during an accounting period (e.g., a two-year insurance premium) part of which will be "used up" in the upcoming accounting period. The unused portion of the expense is considered a current asset and recorded as such on the Balance Sheet.

1. An expense paid before receipt of the good or service to which it relates. 2. (Accounting based) An expense paid in one accounting period for goods or services to be received in another accounting period.

Expenses paid in a fiscal year which specifically related to the operations of a future fiscal year.

An expense you pay for in advance; an expense you incur for goods and services you will receive in a later fiscal period; amounts you pay in interest, income taxes, municipal taxes, rent, dues, or insurance for later fiscal periods. These amounts are included as assets on the balance sheet at the end of a fiscal period.