Prepaid interest

Definition:

An asset account showing interest that has been paid in advance, which is expensed and charged to the borrower's P & L statement.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Noninsured plans

Defined benefit pension plans that are not guaranteed by life insurance products. Related: Insured plans.

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