# Prepaid expense

> Prepaid expense — Cash paid before the benefit is consumed — an asset until it is.

Source: https://lopifi.com/glossary/prepaid-expense
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is prepaid expense?** In accounting, prepaid expense means cash paid before the benefit is consumed — an asset until it is.

## Words this system refuses for it

- prepayment (that is a customer paying us early)

- **Category:** Foundations
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** expense, asset