prepaid expenses

  

Definition

Costs such as rent, interest, insurance premium, etc., that are paid in advance of actually incurring them and (as opposed to deferred charges) are regularly recurring the normal course of a firm's business.

Use prepaid expenses in a sentence

  • The accountant explained to the new employee that the rent and insurance premiums are paid in advance and must be recorded in the books as prepaid expenses.

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  • It was nice knowing that I could use the AC and heat as much as I wanted in the building. With it being a part of my prepaid expenses, I didn't have to worry about any hidden fees if I used either way more often if I felt the need.

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  • There were too many prepaid expenses and I could not afford to go over there in the future and live.

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