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:

Finishing

The final process in manufacturing, where products receive their last touches, such as polishing, painting, or packaging, to prepare them for sale or distribution.

Predetermined Overhead Rates

The estimated overhead rates used to assign manufacturing overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

The total operating time of machinery used in the production process, expressed in hours, as a basis for allocating manufacturing overhead costs.

Forming

The process of shaping material into desired shapes by applying physical force or through the use of machinery.