Business Pitch Dictionary by pitch.dog
Assets, liabilities & equity · Core

Prepaid expense

Also called: prepayment

ELI5

Payment made before the related benefit or service is consumed.

Used in conversation

“The headline changes once we calculate prepaid expense consistently.”

Pitch context

You will see “Prepaid expense” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.