Prepaid Items: On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.

 

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Prepaid Items: On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.

Prepaid Group Practices: Term originally used to describe healthcare systems that later became known as health maintenance organizations.

Prepaid Group Legal Plan: A benefit plan that provides employees, their spouses or dependents with assistance in obtaining legal services, which have been prepaid in whole or in part by the employer.

Prepaid Interest: An asset account showing interest that has been paid in advance, which is expensed and charged to the borrower's P & L statement.

529 Prepaid Tuition Plan: With a prepaid tuition plan, you purchase tuition credits at current rates to be used at some point in the future when your beneficiary attends one of the colleges or universities participat . . . View Full Definition

Prepaid Ticket: Ticketing method in which a person or company purchases an airline ticket in one location for a traveler in another. The traveler picks up the prepaid ticket from the airline ticket counter.

Prepaid Ticket Advice: A form used when purchasing an air ticket to be picked up and used by someone else at another airport. E-tickets have reduced the need for this greatly.

Prepaid Expenses: Services, goods, and intangibles paid for prior to the period in which they provide benefit. Prepaid expenses are accounted for as assets until their benefit is realized.

Cash-Equivalent Items: An accounting book that is composed of cash receipts plus disbursements. This balance is posted to the cash account in the ledger.

Accrued Items: In a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.