Advance payment




An advance payment, or simply an advance, is the part of a contractually due sum that is paid or received in advance for goods or services, while the balance included in the invoice will only follow the delivery. Advance payments are recorded as a prepaid expense in accrual accounting for the entity issuing the advance. Advanced payments are recorded as assets on the balance sheet. As these assets are used they are expended and recorded on the income statement for the period in which they are incurred. Insurance is a common prepaid asset, which will only be a prepaid asset because it is a proactive measure to protect business from unforeseen events.



See also



  • Advance against royalties

  • Chicago Options Associates

  • Pay or play contract

  • Prepaid expense

  • Signing bonus



External links


  • Dictionary of Small Business definition: "advance payment"







-

Popular posts from this blog

Italian cuisine

Image
"Italian restaurant" redirects here. For the television series, see Italian Restaurant. Some typical Italian gastronomic products in a window display in Imola Pizza is one of the world's most popular foods and a common fast food item Part of a series on the Culture of Italy History People Languages Traditions Mythology and folklore Mythology folklore Cuisine Festivals Religion Art Literature Music and performing arts Music Media Television Cinema Sport Monuments World Heritage Sites Symbols Flag Coat of arms Italy portal v t e Italian cuisine History Ancient Roman cuisine Medieval cuisine Early modern cuisine Contemporary cuisine Regional cuisines Apulian cuisine Lombard cuisine Neapolitan cuisine Roman cuisine Sicilian cuisine Venetian cuisine Cuisine of Abruzzo Cuisine of Sardinia Lists Chefs Dishes Pas...
Read more

Bulgarian cuisine

Image
Part of a series on Bulgarians .mw-parser-output .nobold{font-weight:normal} българи Culture Literature Music Art Cinema Names Cuisine Dances Costume Sport Public holidays in Bulgaria By country Albania Australia Canada Czechoslovakia Greece New Zealand Romania Serbia South America Turkey Ukraine United States Bulgarian citizens France Germany Hungary Italy Lebanon Lithuania Macedonia Spain United Kingdom Subgroups Anatolian Balkanian Banat Bulgarians Bessarabian Bulgarian Dobrujans Macedonian Ruptsi Balkandzhii Pomaks (Bulgarian Muslims) Thracian Shopi/Torlaks Şchei Religion Bulgarian Orthodox Church Islam Catholic Church Protestant denominations Language Bulgarian Dialects Banat Bulgarian Other List of Bulgarians People of Bulgarian descent v t e Tarator is a cold soup made of yogurt, water, minced cucumber, dill, garlic, and sunflower or olive oil (Chips are...
Read more

Carrot

Image
Root vegetable, usually orange in color This article is about the cultivated vegetable. For other uses, see Carrot (disambiguation). Carrot Scientific classification Kingdom: Plantae Clade : Angiosperms Clade : Eudicots Clade : Asterids Order: Apiales Family: Apiaceae Genus: Daucus Species: D. carota Subspecies: D. c. subsp. sativus Trinomial name Daucus carota subsp. sativus (Hoffm.) Schübl. & G. Martens The carrot ( Daucus carota subsp. sativus ) is a root vegetable, usually orange in colour, though purple, black, red, white, and yellow cultivars exist. [1] Carrots are a domesticated form of the wild carrot, Daucus carota , native to Europe and southwestern Asia. The plant probably originated in Persia and was originally cultivated for its leaves and seeds. The most commonly eaten part of the plant is the taproot, although the stems and leaves are eaten as well. The domestic carrot ha...
Read more