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Prepaid Expenses
Prepaid expenses are future expenses that have been paid in advance. You can think of prepaid expenses as costs that have been paid but have not yet been used up or have not yet expired.
Prepaid income
Prepaid income is funds received from a customer prior to the provision of goods or services. It is considered a liability, since the seller has not yet delivered, and so it appears on the balance sheet of the seller as a current liability. Once the goods or services have been delivered, the liability is cancelled and the funds are instead recorded as revenue.
Prepaid Assets
The costs for a valued instrument that have not yet taken place. An example: rent for the next month for a company building. The company will record this as an asset and an expense.
prepaid is the recording of asset before the utilizing it and you start utilize in the following period (month , year..)
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