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