Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expenses (accrued liability), or (d) accrued revenue (accrued asset). 1 A three-year premium paid on a fire insurance policy. 2 Utilities owed but not yet paid. 3 Supplies on hand. 4 Salary owed but not yet paid. 5 Interest owed but payable in the following period. 6 Subscriptions received in advance by a newspaper publisher. 7 Professional Fees received but not yet earned. 8 Professional Fees earned but not yet received. 9 Interest paid in advance from a bank loan. 10 Rent collected in advance. 11 Services rendered but uncollected. 12 Advertising paid in advance for 3 months. 13 Income collected but not yet earned. 14 Rent paid in advance. 15 Interest collected in advance by the creditor.

Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expenses (accrued liability), or (d) accrued revenue (accrued asset). 1 A three-year premium paid on a fire insurance policy. 2 Utilities owed but not yet paid. 3 Supplies on hand. 4 Salary owed but not yet paid. 5 Interest owed but payable in the following period. 6 Subscriptions received in advance by a newspaper publisher. 7 Professional Fees received but not yet earned. 8 Professional Fees earned but not yet received. 9 Interest paid in advance from a bank loan. 10 Rent collected in advance. 11 Services rendered but uncollected. 12 Advertising paid in advance for 3 months. 13 Income collected but not yet earned. 14 Rent paid in advance. 15 Interest collected in advance by the creditor.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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