Question

income recieved in advance​

Answer 1

Under the accrual method of accounting, income that is received in advance is a liability because the company that received the money has not yet earned it and it has an obligation (a liability) to deliver the related goods or services in the future..

Answer 2

Answer:

Accrued Income is the income which is earned but not yet received. '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.

Explanation:

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