Prepaid Expenses in Accounting: Definition & Examples


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question 1 of 3

What are prepaid expenses?

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1. What are some examples of services that are typically prepaid?

2. Why would a manufacturer require prepaid for products?

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About This Quiz & Worksheet

This quiz and corresponding worksheet test your understanding of what prepaid expenses are as well as some examples of services that are typically prepaid.

Quiz & Worksheet Goals

You'll have the chance to review the following:

  • Definition of prepaid expenses
  • Types of prepaid services
  • Why a manufacturer would require prepayment
  • A supply that businesses often have to prepay
  • Reasons prepayment is common

Skills Practiced

This worksheet and quiz will let you practice the following skills:

  • Interpreting information - verify you can read information regarding why a manufacturer would require prepayment and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about examples of prepaid expenses
  • Reading comprehension - ensure that you draw the most important information from the related business lesson

Additional Learning

To learn more, be sure to pull up the lesson called Prepaid Expenses in Accounting: Definition & Examples. This lesson will help you:

  • Describe when a business would record something as a prepaid expense
  • Explain how insurance is addressed