Question

5.         Match items 1-6 below with these classifications (a, b, c, and d):

a.	accrued asset
b.	unearned revenue
c.	accrued liability
d.	prepaid expense

?

	Three months' interest on notes payable paid in advance
	Subscription fees for six months received in advance
	Services rendered but not yet billed at month-end
	Interest payable accrued on an accounts payable, but not yet paid
	Salaries payable owed but not yet paid
	Two year's premium on building paid in advance

Answer 1

1	Three months' interest on notes payable paid in advance	d. prepaid expense
2	Subscription fees for six months received in advance	b. unearned revenue
3	Services rendered but not yet billed at month-end	a. accrued asset
4	Interest payable accrued on an accounts payable, but not yet paid	c. accrued liability
5	Salaries payable owed but not yet paid	c. accrued liability
6	Two year's premium on building paid in advance	d. prepaid expense