Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense.
a. Cash received for services not yet rendered
b. Insurance paid for the next year
c. Rent revenue earned but not received
d. Salaries owed but not yet paid
Answer:
a. Unearned revenue
b. Prepaid expense
c. Accrued revenue
d. Accrued expense