Question

Unearned income is
A income due
B income received in advance
C both a and b
D none of these

Answer 1

Answer:

b} income recieved in advance

Explanation:

Sometimes earned revenue that belongs to a future accounting period is received in the current accounting period, such income is considered as income received in advance. It is also known as Unearned Revenue, Unearned Income, Income Received but not Earned because it is received before the related benefits are provided.

This revenue is not related to the current accounting period, for example, Rent received in advance, Commission received in advance, etc.