Classify Accruals and Deferrals Classify the following items as (a) deferred expense (prepaid expense), (b) deferred revenue (unearned revenue), (c) accrued expense (accrued liability), or (d) accrued revenue (accrued asset). Subscriptions received in advance by a magazine publisher: 1. A three-year premium paid on a fire insurance policy. 2. Fees received but not yet earned. 3. Fees earned but not yet received. 4. Utilities owed but not yet paid. 5. Supplies on hand. 6. Salary owed but not yet paid. 7. Taxes owed but payable in the following period