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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. It is called 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.
Printed dictionaries and other books with definitions for Advance payment
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Commercial advance payment means a payment made before any performance of work under ...
by Mohamed Aamer
In the vendor invoice form, select the vendor ID and enter the invoice number, description, item number, and then the amount, as shown in the following screenshot: An advance payment is a regular business scenario where vendors are ...
by John Owen Edward Clark
advance payment bond Company's guarantee (usually through its ...
Advance Payment ...
A Dictionary of Accounting (2010)
by Jonathan Law, Gary Owen
Formerly, an advance payment of *corporation tax payable when a company ...
advance payment Apartial payment toacontractor made shortly after thecontract issigned. Similar to a down payment. advance payment bond The generic term forthe assurance of performance ...
by J. LeRoy Ward
advance payment (1) Advance of money made by the buyer to the contractor before, in anticipation of, and applicable to ...
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VOCABULARY IN 20 LANGUAGES = advance payment
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