Question

income received in advance example​

Answer 1

Answer:

The following are a few examples of revenue received in advance:-

 An insurance company receiving premiums for protection during the following six months. A magazine publisher receiving money from a subscriber for magazines for the following year. A website design company receiving a client's down payment for future work.

Explanation:

'Income received in advance', as the name suggests, are the earned revenue which is to be earned in the future in an accounting period but is already received in the current accounting period.