Select the best situation
prepaid expense (PE), revenue received in advance (RRA), accrued revenue (AR) or an accrued expense (AE).
-Unpaid salaries earned by year end but not yet paid or recorded amounted to $1,200.
A) prepaid expense (PE)
B) revenue received in advance (RRA)
C)accrued revenue (AR)
D)an accrued expense (AE).

Question

Select the best situation 
prepaid expense (PE), revenue received in advance (RRA), accrued revenue (AR) or an accrued expense (AE).
-Unpaid salaries earned by year end but not yet paid or recorded amounted to $1,200.
A) prepaid expense (PE)
B) revenue received in advance (RRA)
C)accrued revenue (AR)
D)an accrued expense (AE).

Quizplus · Accepted Answer

Unpaid salaries earned by year end but not yet paid or recorded are considered an accrued expense (AE) because it represents an expense that has been incurred during a period but has not been paid or recorded by the end of that period.

Select the Best Situation