Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense:

Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense:

a. Cash received for use of land next month.

b. Fees earned but not received in cash.

c. Wages owed but not yet paid.

d. Supplies on hand.

Answer:

a. (2) Unearned revenue

b. (3) Accrued revenue

c. (4) Accrued expense

d. (1) Prepaid expense