Question

meaning of commission received in advance ​

Answer 1

Explanation:

unearned income

=> In this particular question the Commission that is received in advance is considered to be an unearned income. Since the benefits that the company is supposed to receive, will be received later and making it belong to the next accounting years transaction makes it a liability to the company.

Answer 2

Answer:

Commission received in advance is unearned income. Unearned income is defined as income not due but recieved. Till the time, it accrue, this will be shown as liability in the balance sheet.