Question

Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. Terms:A. Prepaid ExpensesB. Unearned RevenuesC. Accrued RevenuesD. Accrued Expenses<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />Statements:1. A revenue not yet earned; collected in advance___2. Office supplies on hand that will be used in the next period___3. Subscriptions revenue collected; already earned___4. Rent not yet collected; already earned___5. An expense incurred; not yet paid or recorded___6. A revenue earned; not yet collected or recorded___7. An expense not yet incurred; paid in advance___8. Interest expenses incurred; not yet paid___

Answer 1

Answer:

Explanation:

1. Prepaid Expenses: In this transaction, the collection is made in advance so it will be come under prepaid expenses

2. Prepaid Expenses: In this transaction, the office supplies are used in the next period, so it will be treated as prepaid expenses

3. Accrued revenues: The subscription revenue is already earned, so it will be treated as a accrued revenues

4. Accrued revenues: The rent is earned but not collected, so it will be treated as a accrued revenues

5. Accrued Expenses: As the expenses are incurred but not yet paid or recorded so, it will be treated as outstanding expenses

6. Accrued Revenues:  As the revenue is earned but not yet collected or recorded so, it will be treated as an accrued revenues

7. Accrued Expenses: As the interest expenses are incurred but not yet paid or recorded so, it will be treated as outstanding expenses