Accruals and Deferrals For the following situations, indicate whether each involves a deferred expense (DE), a deferred revenue (DR), an accrued liability (AL), or an accrued asset (AA).

Example: DE Offi ce supplies purchased in advance of their use ___________ 1. Wages earned by employees but not yet paid ___________ 2. Cash collected from subscriptions in advance of publishing a magazine ___________ 3. Interest earned on a customer loan for which principal and interest have not yet been collected ___________ 4. One year’s premium on life insurance policy paid in advance ___________ 5. Offi ce building purchased for cash ___________ 6. Rent collected in advance from a tenant ___________ 7. State income taxes owed at the end of the year ___________ 8. Rent owed by a tenant but not yet collected AppendixLO1