Type of Adjustment Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: a. Cash received for services not yet rendered b. Insurance paid for the next year c. Interest revenue earned but not received d. Salaries owed but not yet paid

Type of Adjustment Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense: a. Cash received for services not yet rendered b. Insurance paid for the next year c. Interest revenue earned but not received d. Salaries owed but not yet paid

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 6MC: Which type of adjustment occurs when cash is either collected or paid, but the related income or...

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Question

Type of Adjustment

Classify the following items as (1) prepaid expense, (2) unearned revenue, (3) accrued revenue, or (4) accrued expense:

a. Cash received for services not yet rendered
b. Insurance paid for the next year
c. Interest revenue earned but not received
d. Salaries owed but not yet paid

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