Prepaid expense definition

Prepaid expense means an item paid in advance by a seller of real property and prorated between a seller and buyer at the time of closing on a property including property tax, insur- ance, assessment, fuel and utilities, and others.
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Examples of Prepaid expense in a sentence

  • As a result of this Acquisition, the Company acquired the following assets: Prepaid expense $ 13,163 Equipment 10,658 Customer List 182,000 Software 830,000 Total $ 1,035,821 The above amounts represent the allocation of the purchase price based on the asset valuation which occurred during March 2012.

  • Prepaid expense At March 31, 2005 our prepaid expenses totaled $901,015, which consisted of approximately $422,000 in prepaid mortgage interest for the construction loan on the Meritage development project, approximately $94,000 in escrow for property taxes associated with the golf course and the Rio Vista property, $42,000 of prepaid insurance related to the golf course, and approximately $343,000 of prepaid expenses related to the Airtek cranes and safety equipment business.

Related to Prepaid expense

  • Prepaid contract means a contract requiring payment in advance for funeral or cemetery services or merchandise, physical delivery and retention of which would occur after death under a guaranteed price contract or a nonguaranteed price contract. Prepaid contracts do not include a contract for the sale of merchandise or funeral or cemetery services entered into after the death of the contract beneficiary.

  • Extra Expense means expense or cost incurred (1) to continue the conduct of the Assured’s business,