Prepaid Expenses
Prepaid expenses refer to the advance payment made by a company for goods or services that will be received in the future. They are considered assets on a company's balance sheet because they represent future economic benefits. Examples of prepaid expenses include prepaid rent, insurance, taxes, and subscriptions. These expenses are recorded as an asset until the time they are used or consumed, at which point they become expenses and are recognized on the income statement. Companies use prepaid expenses in order to better match expenses with revenue and to manage cash flow.
Additional Details
| Metric Name |
Type |
Default Period Type |
| prepaid_expenses |
fin_statement |
FY |
| Data Format |
Display Format |
Unit |
| float |
financial |
usd |