Money received in advance of either providing the service or good to the customer. In the case of paying taxes on this type of income, they are usually paid the year they are received, but a business owner can defer this type of income to the next tax year or the year in which it is actually earned/collected. Also called unearned revenue.
Related information about prepaid income:
- Prepaid Income - Accounting-Simplified
Prepaid income is revenue received in advance but which is not yet earned. Income must be recorded in the accounting period in which it is earned.
- What is prepaid income? definition and meaning
Definition of prepaid income: Money received in advance of either providing the service or good to the customer. In the case of paying taxes on this type of ...
- What is Taxable and Nontaxable Income?
Oct 24, 2012 ... Prepaid income. Prepaid income, such as compensation for future services, is generally included in your income in the year you receive it.
- What Is Prepaid Income? | Wall Street Oasis
Prepaid Income is an accounting concept that refers to a payment that has been received, but the asset has not yet been fully delivered. The company receives a ...
- Accounts: Prepaid Income accounts for retainer fees : Wave Support
May 20, 2012 ... If you deal with retainer fees, deposits, or any scenario where you're accepting money now for payment later, you'll need to set up a Prepaid ...
- Prepaid Income: Definition from Answers.com
Includes rents or interest received in advance and compensation for services to be performed later. Prepaid income is generally included in taxable income.
- prepaid income - Business Definition
prepaid income definition: Compensation received in advance of a promised ... Prepaid income is generally taxable in the year in which it is received, unless a ...
- Kashoo | Entering Prepaid Income Tax Installments
Jun 28, 2012 ... How do I enter prepaid income tax installments? If you are expected by the tax authorities to pay your income taxes in installments throughout ...