Prepaid Expenses (SF.BS.PrepaidExpenses) refers to goods or services that have already been purchased, but not yet been fully consumed or used. Prepaid Expenses (SF.BS.PrepaidExpenses) is a part of current assets, as benefits are expected to accrue within one year or an operating cycle of the company, whichever is longer, from the current fiscal period end date.
Prepaid assets may include prepaid fees, commissions, taxes, insurance expenses, prepayments to reinsurers, rents, or other expenses.

Prepaid Expenses (SF.BS.PrepaidExpenses) includes:

• Accrued revenue, if the company does not differentiate it from prepaid expenses
• Prepaid taxes

Prepaid Expenses (SF.BS.PrepaidExpenses) does not include:

• Prepayments for inventories (classified as Inventories – Other (SF.BS.Inventories_Other))
• Deferred income tax assets (classified as Deferred Income Tax – Current Asset (SF.BS.DeferredIncomeTax_CurrentAsset))
• Accrued revenue (not from main business), if separated from prepaid expenses (classified as Receivables – Other (SF.BS.Receivables_Other))

Related Entries

• Acceptances Outstanding (SF.BS.AcceptancesOutstanding)
• Accounts Payable (SF.BS.AccountsPayable)
• Accounts Receivable – Trade, Gross (SF.BS.AccountsReceivable_TradeGross)
• Accounts Receivable – Trade, Net (SF.BS.AcctsReceivable_TradeNet)
• Accrued Expenses (SF.BS.AccruedExpenses)