Define what is Prepaid expenses, Accrued expenses, Unearned revenue and Accrued revenue

Prepaid Expenses: These are the expenses that a company pays for in advance. In other words, these are future expenses that have been paid for prior to them being incurred. For example, a company might prepay its rent, insurance, or utilities. These expenses are recorded as current assets on the balance sheet and are then gradually expensed through the income statement over the time period to which they relate.

Accrued Expenses: These are expenses that a company has incurred but has not yet paid for. For example, a company might have received goods or services from a supplier but has not yet received an invoice or made a payment. These expenses are recorded as current liabilities on the balance sheet and are expensed on the income statement when they are incurred, not when they are paid.

Unearned Revenue: This is money received by a company for a product or service that it has not yet delivered or performed. For example, a magazine publisher might receive payment for a one-year subscription, but it has not yet provided all the issues to the customer. This payment is recorded as a liability (unearned revenue) on the balance sheet until the product or service is delivered, at which point it is recognized as revenue on the income statement.

Accrued Revenue: This is revenue that a company has earned but has not yet received payment for. For example, a company might have provided services to a customer but has not yet invoiced the customer or received payment. This revenue is recorded as an asset (accounts receivable) on the balance sheet and is recognized as revenue on the income statement when it is earned, not when payment is received.