A three-year premium paid on a fire insurance policy. 2. Fees earned but not yet received.

Classify the following items as (a) prepaid expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense.

1. A three-year premium paid on a fire insurance policy.
2. Fees earned but not yet received.
3. Fees received but not yet earned.
4. Salary owed but not yet paid.
5. Subscriptions received in advance by a magazine publisher.
6. Supplies on hand.
7. Taxes owed but payable in the following period.
8. Utilities owed but not yet paid.

Answer:
1. Prepaid expense      5. Unearned revenue
2. Accrued revenue     6. Prepaid expense
3. Unearned revenue   7. Accrued expense
4. Accrued expense     8. Accrued expense