Select the most appropriate alternative from those given below and rew

1.	Select the most appropriate alternative from those given below and rewrite the statement.Income received in advance is shown on the __________.OptionsDebitCreditAssetLiability
Answer» Income received in advance is shown on the liability side. Explanation: Income received in advance is an example of Representative Personal Account and always shows a credit balance (being a liability). This income is received in the current year but belongs to the next year. So, it represents a liability; therefore, it is recorded on the Liabilities side of the Balance Sheet.

Select the most appropriate alternative from those given below and rewrite the statement.Income received in advance is shown on the __________.OptionsDebitCreditAssetLiability

Answer»

Income received in advance is shown on the liability side.

Explanation: Income received in advance is an example of Representative Personal Account and always shows a credit balance (being a liability). This income is received in the current year but belongs to the next year. So, it represents a liability; therefore, it is recorded on the Liabilities side of the Balance Sheet.

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Select the most appropriate alternative from those given below and rewrite the statement.Income received in advance is shown on the __________.OptionsDebitCreditAssetLiability

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