'Subscriptions collected in advance by a publisher' should be classified as _________________.

Accrued asset

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Accrues liability

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Unearned revenue

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Prepaid expense

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Solution

The correct option is D Unearned revenue
Deferred revenue is common with subscription-based products or services that require prepayments. Examples of unearned revenue are rent payments received in advance, prepayment received for newspaper subscriptions, annual prepayment received for the use of software, and prepaid insurance.

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Rent expense of a non-profit organisation paid in advance is classified as a/an ____

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