Q
The adjustment to be made for income received in advance is:
-
A
A. Add income received in advance to respective income and show it as a liability
-
B
B. Deduct income received in advance from respective income and show it as a liability
-
C
C. Add income received in advance to respective income and show it as asset
-
D
D. Deduct income received in advance from respective income and show it as an asset in the balance sheet
Correct Answer:
B. B. Deduct income received in advance from respective income and show it as a liability
