alleryStart learning →An advance payment received before delivery is initially shown as what?
ARevenue earned
BOther income
CDeferred income
DTrade receivable
Answer & Solution
Correct answer: C. Deferred income
Until the goods or services are transferred, the advance is a liability in the form of deferred income.
Keep practising Ind AS 115 Revenue from Contracts with Customers
Browse all Ind AS 115 Revenue from Contracts with Customers questions for CA Final, or explore more Financialreporting topics.
Related questions
Repayment of debt principal belongs to which activity?In the indirect method, an increase in an asset account is treated how?The indirect method of cash flow preparation starts from what?Purchase or sale of an asset is classified under which activity?Under IAS 7, where may interest paid be reported?Which item does a cash flow statement exclude as a non-cash transaction?Why can a profitable company still run short of cash?A cash flow statement splits cash flows into which three?