Classify the Following Items As

question 49

Essay

Classify the following items as:
(1) prepaid expense,
(2) unearned revenue,
(3) accrued expense, or
(4) accrued revenue.​a) Fees received but not yet earnedb) Fees earned but not yet receivedc) Paid premium on a one-year insurance policyd) Property tax owed to be paid beginning of next year

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Definitions:

Inventory

Raw materials, work-in-progress, and finished goods that are considered part of a business's assets that are ready or will be ready for sale.

Non-Value-Added Costs

Expenses that do not contribute to the value or appeal of a product or service from the perspective of the customer.

Schedule Of Activity

A detailed plan that outlines all the tasks, timings, and responsibilities involved in a project or process to ensure successful completion and management.

Costs

Expenses incurred by a business or individual in the production, maintenance, or purchase of goods and services.