Definition
Prepaid expenses can help you save time & money. They're a type of expense that's paid for before it's incurred and allow you to keep an eye on things.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Prepaid expense?” The useful answer is concrete: payment made in advance for goods or services to be received in the future. A slide title is not an answer.
Common mistake
Using Prepaid expense as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Pre-closing
Period before finalizing a business transaction or real estate deal.
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Preference shares
Stock that gives shareholders priority over common stockholders for dividends and assets.
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Price elasticity
Measure of how sensitive demand is to changes in price.
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Price floor
Minimum price that can be charged for a product or service.
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