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The adjustment to be made for income received in advance is:
Accountingmedium
AAdd income received in advance to respective income and show it as a liability
Income received in advance given as an adjustment requires a deduction of the same from the income amount and disclosure of the same as a liability in the Balance Sheet.
CAdd income received in advance to respective income and show it as asset
DDeduct income received in advance from respective income and show it as an asset in the Balance Sheet
Correct Answer: B. Income received in advance given as an adjustment requires a deduction of the same from the income amount and disclosure of the same as a liability in the Balance Sheet.
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