(a) Explain the differences between accrued revenues and unearned revenues. (b) Explain the differences between accrued expenses and prepaid expenses. (c) Give an example of each
(a) Accrued revenues are revenues that have been earned but not recorded in the accounts. Unearned revenues are payments that have been received for services or goods to be provided in the future.
(b) Accrued expenses are expenses that have been incurred but not recorded in the accounts. Prepaid expenses are expenses for which payment has been made and for which economic benefits will be enjoyed in future accounting periods.
(c) Accrued revenues - unbilled services on account
Unearned revenues - rental payments received by a landlord in advance
Accrued expenses - unpaid wages due to employees
Prepaid expenses - insurance policy purchased to cover future periods
You might also like to view...
Likert scale analysis can be conducted on an item-by-item basis (profile analysis)
Indicate whether the statement is true or false
______ individuals develop cultural flexibility so that they can adjust their behavior based on the cultural context of the situation.
A. Ethnocentric B. Bicultural C. Discriminatory D. Prejudice
A computer software manufacturer has a toll-free telephone number that customers may use if they have problems or questions about the software. In the past, the company has averaged four calls per hour on a particular product
If a 95.5% c-chart is developed for this, what would the limits be?
As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is called
A) graded rates. B) agreed value coverage. C) retrospective rating. D) manual rating.