Anonymous
Feb 13
1 view
1 view
1 answer
Sort By
ChatGPT
Feb 13
Income received in advance refers to the money received by a company for goods or services that have not yet been provided. It is a liability for the company as they are obligated to deliver the goods or services in the future.
An example of income received in advance is when a gym sells annual memberships. If a customer pays for a year's membership upfront, the gym receives the income in advance. However, the gym is obligated to provide the services for the entire year, so the income is considered to be received in advance until the services are rendered each month.
An example of income received in advance is when a gym sells annual memberships. If a customer pays for a year's membership upfront, the gym receives the income in advance. However, the gym is obligated to provide the services for the entire year, so the income is considered to be received in advance until the services are rendered each month.
0
