Homework Answers
A. Fees received but not yet earned is Unearned revenue because the service is not yet provided.
B. Fees earned but not yet received is Accrued revenue because the revenue is earned during the year.
C. Paid insurance premium for one year is a prepaid expense.
D. Property tax owed to be paid next year is an accrued expense.
SUMMARY:
A. It is unearned revenue because the service is not yet provided.
B. It is treated as accrued revenue because the service is provided and cash will be collected after that.
C. It is a prepaid expense which is a asset.
D. It is an accrued expense because the expense is incurred and cash will be paid next year.
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