(A) Add income received in advance to respective income and show it as a liability (X)
(B) Deduct income received in advance from respective income and show it as a liability (
)
(C) Add income received in advance to respective income and show it as asset (X)
(D) Deduct income received in advance from respective income and show it as an asset in the Balance Sheet (X)
Answers: The adjustment to be made for income received in advance is Deduct income received in advance from respective income and show it as a liability.
