Prepaid expenses are costs you pay up front for goods or services that you'll use in future accounting periods. See common examples and how to record them. Learn what prepaid expenses are, how to classify them as an asset or expense on your financial statements, and examples of prepaid expenses. Get ideas here. Prepaid expenses arise when a company pays in advance for goods or services it will receive in the future. Common examples include rent, insurance premiums, and legal retainers. Are you Looking to Know About Prepaid Expenses? Find What is it, Importance, Types, Examples and Best Practices. Read More
