Prepaid Expenses

Prepaid expenses are expenses that have been paid in advance, and the related costs are included in the company’s balance sheet. Prepaid expenses are one of the most reliable and safe measures for companies to record their assets.

Generally, prepaid expenses refer to payments made in advance before the actual costs are incurred. It is not right to think that we will incur these expenses in the future. In addition, prepaid expenses are not contingent on current financial performance.