A Prepaid Expense Is

Short Answer

A prepaid expense is
an expense, such as rent, that is paid before the upcoming period in which it is due.
a nonphysical asset, such as a patent or trademark, that has economic value in the form of expected benefit.
an amount due from a customer who has purchased goods on credit.
an asset that can or will be converted to cash within the following year.
an asset with long-term use or value, such as land, buildings, and equipment.