Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expense (accrued liability), or (d) accrued revenue (accrued asset). 1. Fees earned but not yet received. 2. Taxes owed but payable in the following period. 3. Salary owed but not yet paid. 4. Supplies on hand. 5. Fees received but not yet earned. 6. Utilities owed but not yet paid. 7. A two-year premium paid on a fire insurance policy. 8. Subscriptions received in advance by a magazine publisher.

Q: Name the specific third party that the company owes for each of the following liabilities. A. Sales…

A: here's a more detailed explanation for each liability: A. Sales tax payable: This liability…

Q: For each of the following accounts, identify if it is nominal/temporary or real/permanent: Fees…

A: Permanent accounts are those accounts whose balance at the end of a given period (generally at the…

Q: List the name of at least four accounts that represent accruals or deferrals—these could be accrued…

A: The accounts that represent accruals or deferrals are used to prepare books as per accrual method of…

Q: Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued expense, or…

A: Fees earned but not yet received will be considered  under Accrued Revenue. Accrued revenue is a…

Q: Under accrual accounting, when should expenses be matched against revenue? after cash is collected…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: Which of the following is NOT considered an accrued expense account? Interest Expense Rent Expense…

A: The correct answer is Option (C) Depreciation expense because the depreciation is an adjusting entry…

Q: Adjusting entry for accrued expense includes a debit to Expense and a credit to Liability. (A) True…

A: Answer: Accrued expenses are expenses that are appearing as the expenses but it is still not paid to…

Q: According to accruals rules, when a service is performed, the revenue should be recognized…

A: Solution- Accrual accounting is an accounting method whereby revenue and expenses are recorded in…

Q: Using accrual accounting, expenses are recorded and reported only a.when they are incurred, whether…

A: Under Accrual system of accounting, expenses are recorded in the books of account as they are…

Q: Which of the following accounts was created as the result of an accrual for expenses?  Group of…

A: Lets start with the basic understanding. Accrual for expense is a liability which is incur because…

Q: Which accounting principle requires expenses to be recognized in the period in which they are…

A: Accounting principle refers to the guidelines that organizations must follow while reporting the…

Q: Fill in the blank associated with each adjusting entry: a. Prepaid expense: Debit Supplies Expense;…

A: a. Prepaid expense: Debit Supplies Expense; credit Suppliesb. Deferred revenue: Debit deferred…

Q: Which of the following accounts is a non-current asset account?

A: Non-current assets:   Non-current assets are assets that can be held for a longer period of time…

Q: Expenses paid and recorded as assets before they are used are called   Select one: a.  interim…

A: Expenses incurred in the interim period of an aggregate expense. It is known as interim expense.…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Wages…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: For the following accounts indicate whether the normal balance is a debit or a credit A. Unearned…

A: As , normally accounts are classified under 4 different heads  a. Assets  b. Liabilities c. Expense…

Q: Consider the following accounts and identify each account as an Asset(A), Liability(L), or…

A: Assets accounts are those accounts that are related to resources of the organisation. Liability…

Q: Which of the following is an example of revenue or expense to be recognized in the current period’s…

A: Income statement forms a part of financial statements and is prepared with a view to show the net…

Q: Accrued expenses (accrued liabilities) are: C . expenses that have been reported on the income…

A: An accrued expense is an expenditure reported in the time in which the expense is incurred that is…

Q: Which of the following is an amount for products or services purchased on account? Oaccounts payable…

A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…

Q: Under accrual basis of accounting, revenue is recognized when ______________ and expenses are…

A: Accrual basis of Accounting recognises when transactions take place. Under accrual basis accounting…

Q: Classify each of the following items as revenues (R), expenses (EX), or withdrawals (W). Rent…

A: Revenues are the amount received from the sale of goods and services.  Expenses are the cost…

Q: Deferred revenues represent liabilities recorded when cash is received from customers in advance of…

A: Adjusting entries:Adjusting entries are the journal entries, which are recorded at the end of the…

Q: Expenses unpaid at the end of a given accounting period is known as ___. a. Unearned revenues b.…

A: Accounting period is the time period or duration for which the books of accounts are collectively…

Q: Which of the following is an example of a prepaid expense? Please explain with full explanation. a.…

A: A prepaid expense is an asset for which we have paid in advance and for which the benefit shall be…

Q: Unearned revenues O a. are recorded as assets when cash is received. O b. are referred to as future…

A: Revenue is the total income earned by a company by selling all its goods or services. It is recorded…

Q: Using accrual accounting, expenses are recorded and reported only a.if they are paid before they are…

A: The correct option is Option “d”. Using accrual accounting, expenses are recorded and reported only…

Q: Choose between the two choices (Debit or Credit). Then, write your answer before the number.…

A: Financial accounting records all the financial transaction of the business in order to prepare the…

Q: Expense items that have been incurred but not yet recorded in the accounts are: A) unearned…

A: Revenues received in advance and not performed are called unearned revenues. Hence, option A is…

Q: Identify the financial statement(s) that the following items appear on. a)interest expense, b)…

A: The Financial Statements consists of: 1- Profit & Loss Account (Income Statement) 2- Balance…

Q: Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when they…

A: Accrual accounting is a method of accounting that recognizes revenue and expenses when they are…

Q: accruals

A: Under Accrual concept, revenue is recognized when it is earned and expense is recognized when it is…

Q: Expenses paid in advance are recorded: Select one: a. Revenue b. Expenses. c. Liabilities d. Assets

A: Expenses are the amount incurred by the company to generate profit or revenue. Examples of expenses…