Prepaid Income

What are Prepaid Income?

Author: Austin Anderson
Austin Anderson
Austin Anderson
Consulting | Data Analysis

Austin has been working with Ernst & Young for over four years, starting as a senior consultant before being promoted to a manager. At EY, he focuses on strategy, process and operations improvement, and business transformation consulting services focused on health provider, payer, and public health organizations. Austin specializes in the health industry but supports clients across multiple industries.

Austin has a Bachelor of Science in Engineering and a Masters of Business Administration in Strategy, Management and Organization, both from the University of Michigan.

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Reviewed By: Rohan Arora
Rohan Arora
Rohan Arora
Investment Banking | Private Equity

Mr. Arora is an experienced private equity investment professional, with experience working across multiple markets. Rohan has a focus in particular on consumer and business services transactions and operational growth. Rohan has also worked at Evercore, where he also spent time in private equity advisory.

Rohan holds a BA (Hons., Scholar) in Economics and Management from Oxford University.

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Last Updated:May 16, 2022

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 one-off payment for the asset, but delivers its full value either in the future or over time. Prepaid Income is found on the Balance Sheet of a company as a liability (as it is something which is owed), either with its own section or under Other Current Liabilities.

 

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