what are examples of prepaid expenses 
common examples of prepaid expenses include leases rent legal retainers advertising costs estimated taxes insurance salaries and leased office equipment the bottom lineprepaid expense is an accounting line item on a company s balance sheet that refers to goods and services that have been paid for but not yet incurred recording prepaid expenses must be done correctly according to accounting standards they are first recorded as an asset and then over time expensed onto the income statement 