"Prepayments" Example Sentences
1. The company requires a 10% down payment at signing as a prepayment toward the total cost of the project.
2. Customers are required to make an upfront prepayment of $500 upon booking the rental property.
3. According to the agreement, the prepayments will be applied toward production costs once filming begins.
4. The $100,000 received from the customer in 2019 was recorded as a prepayment in our accounting system.
5. The bank statement shows that prepayments of $5,000 were made toward the outstanding mortgage balance last month.
6. In the current liabilities section of the balance sheet, we show customer prepayments totaling $45,000.
7. The fine print on the invoice notes that a 3% prepayment discount is given if payment is received within 10 days.
8. The customer disputed our charges and is requesting a refund of the $2,500 prepayment made last year for the services.
9. I applied my $150 membership prepayment toward my monthly dues for this quarter.
10. The prepayments appear as a liability on the balance sheet until the associated goods or services are provided.
11. The prepayments will be recognized as revenue over the three-year contract period as the consulting services are delivered.
12. We recorded the $12,000 insurance prepayment as an asset that will be expensed over the next twelve months.
13. The client sent in a check for $85,000 as a partial advance prepayment for the upcoming project.
14. The majority of our company's current liabilities consists of customer prepayments toward future orders.
15. The loan agreement requires the borrower to make prepayments of 10% of the outstanding principal each quarter.
16. Prepayments are usually non-refundable but apply toward the total amount due under the contract.
17. At the end of each month, we transfer unused portions of insurance and tax prepayments to the expense accounts.
18. The receipt of customer prepayments provides our business with additional working capital until the products are shipped.
19. The accountant recorded the $600,000 of insurance prepayments as an asset on December 31 and will amortize the expense monthly.
20. At year-end, the audit team confirmed directly with clients the amounts of any prepayments those clients had made during the year.
21. The lease requires the tenant to make monthly prepayments that will cover the estimated common area maintenance charges.
22. Under the terms of the agreement, unused advertising prepayments will carry over into the following year.
23. The company received $500,000 in customer ticket prepayments for the upcoming concert tour.
24. Warranty prepayments are classified as a current liability on the balance sheet since the warranties expire within one year.
25. The cash flow statement will show a decrease in operating cash flows due to the receipt of customer service prepayments.
26. The accounting manual details how prepayments should be recorded, amortized, and transferred to expense accounts.
27. Term life insurance prepayments are amortized over time based on the underlying costs associated with providing the insurance coverage.
28. We had to assess any potential impairment of our prepaid advertising prepayments at fiscal year-end.
29. The auditor spent time reviewing management's methodology for allocating prepayment expenses to the proper accounting periods.
30. I reconciled the general ledger balance for the prepaid expenses account against the listing of all individual insurance, tax, and subscription prepayments.
31. The customer remitted $50,000 in January as prepayments toward the $200,000 total purchase price of the equipment.
32. Unused portions of software license prepayments will be carried forward and applied against the next annual license renewal fee.
33. At the end of each quarter, I reclassified the portion of utility prepayments that was consumed into the current period expense account.
34. We reviewed the list of recorded prepayments to ensure that no expired or improperly capitalized amounts remained on the books.
35. The financial statements footnote discloses the unamortized balance of patent prepayments at the current fiscal year-end.
36. The accountant set up a prepayment contra account to offset the balance recorded in the prepaid expenses general ledger account.
37. Management reviews the aging of prepaid accounts to ensure that old, potentially uncollectible prepayments are written off.
38. Utility prepayments provide some rate stability since they are based on estimated rather than actual consumption.
39. The prepayments are recognized as an expense over the time period in which the underlying benefit is expected to be derived.
40. Property tax prepayments are considered in the calculation of cash flows from operating activities.
41. The decline in customer prepayments resulted in higher operating cash inflows during the current quarter compared to the prior year.
42. The increase in prepayments was primarily due to large upfront subscription fees received from new clients.
43. The company refunds any unearned portions of customer prepayments at the end of a contract or upon early termination.
44. In the cash flow statement, the initial receipt of a prepayment from a customer is recorded as an inflow within operating activities.
45. Technical accounting guidance clarifies the treatment of tax prepayments under different types of tax structures and arrangements.
46. We forecast that full-year prepayments will be 3% higher than last year due to growth in our subscription customer base.
47. Because advertising prepayments decline proportionally over the contract period, they generate consistent revenue each month.
48. The prepayments show the company has already received cash inflow for future services or goods not yet provided.
49. Management needs to establish clear policies for tracking, amortizing, and reviewing prepayments on a regular basis.
50. The controller prepares monthly reconciliations between the detailed listing of prepayments and the general ledger.
51. Interest earned on unspent customer prepayments is remitted back to the customer on an annual basis.
52. The decline in ending prepaid balances indicates that less cash is currently tied up in future-period expenses.
53. Commentary in the report notes the increase in prepayments has reduced short-term cash requirements.
54. Adjustments may be needed at year-end for any unamortized prepayments that were not properly capitalized.
55. The prepayments receivable account contains amounts paid in advance by customers that will be earned in future periods.
56. Unused portions of customer prepayments are recorded as a refund liability within current liabilities.
57. Once the contract expires, any remaining unearned customer prepayments must be refunded.
58. The notes to the financial statements disclose the accounting policy for prepayments received from customers.
59. The report highlights the growth in magazine subscription prepayments as a source of additional working capital.
60. The auditor verifies that prepayments are only applied against the revenue or expense that the prepayment was intended to cover.
Common Phases
1. Record
prepayments
2. Amortize
prepayments
3. Apply
prepayments
4. Receive
prepayments
5. Ensure proper classification of
prepayments
6. Reconcile
prepayments
7. Consider
prepayments in cash flow statements
8. Review
prepayments regularly
9. Refund unused
prepayments
10. Treat
prepayments as a liability
11. Account for
prepayments accurately
12. Establish policies for
prepayments
13. Disclose prepayment policies
14. Monitor aging of
prepayments
15. Allocate prepayment expenses appropriately