The adjustment to be made for income received in advance is:

MCQ Practice

Subject: AccountingTopic: Accounting

Add income received in advance to respective income and show it as a liability

Deduct income received in advance from respective income and show it as a liability

Add income received in advance to respective income and show it as asset

Deduct income received in advance from respective income and show it as an asset in the Balance Sheet

Correct Answer: B

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