What is capital prepaid?
submitted by Felicity

Yuri

Prepaid capital is what a company pays upfront for something like equipment or investments. It isn't recognized as an expense at first. It's actually recorded as an asset. Over time the asset gets used, and that's when the cost is moved to expense.

Debby Smoot

That would be payments a company has made in advance for capital assets or investments. The capital will be used over a long period, so you don't count it as an expense until its used. At the beginning, when it's paid into the account, it's recorded as an asset on the balance sheet.