What adjustment is made for income received in advance?

1. A Option A: Add income received in advance to respective income and show it as asset
2. B Option B: Deduct income received in advance from respective income and show it as an asset in the Balance Sheet
3. C Option C: Deduct income received in advance from respective income and show it as a liability
4. D Option D: Add income received in advance to respective income and show it as a liability

Answer checked 11 October 2026 · How we write and check questions