prepaid interest

prepaid interest definition - finance
An account listed on a companyÂ’s balance sheet that shows how much money it has prepaid in interest. Prepaid interest is an asset. When it actually comes due, it is moved from the prepaid interest asset account to interest expense.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.