# The adjustment to be made for income received in advance is:? with Answer - Accounting Mcqs | TestPrep

> Solved MCQ: The adjustment to be made for income received in advance is: Correct Answer: B. Deduct income received in advance from respective income and show it as a liability. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

---

Tested in Competitive Exams:

- [NTS Test Prep](https://test-prep.blog/exams/nts)
- [FPSC Past Papers](https://test-prep.blog/exams/fpsc)
- [PPSC Solved MCQs](https://test-prep.blog/exams/ppsc)
- [PMDC MDCAT 2026](https://test-prep.blog/exams/mdcat)
- [UET ECAT Prep](https://test-prep.blog/exams/ecat)
- [CSS Central Superior](https://test-prep.blog/exams/css)

- [Accounting Mcqs](https://test-prep.blog/categories/accounting-mcqs)
Difficulty: Moderate 70% Accuracy

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

Direct Answer & Quick Reference

The correct option is **B. Deduct income received in advance from respective income and show it as a liability**.

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

B. Deduct income received in advance from respective income and show it as a liability **(Correct Answer)**

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

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

✨ Explain with AI

Verified Key: B. Deduct income received in advance from respective income and show it as a liability
Solved by 1,945+ students

Verified against official examination board answer keys and standard curriculum textbooks.

- [Previous Question The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is _____ ?](https://test-prep.blog/mcq/the-accounting-process-of-gradually-converting-the-unexpired-cost-of-fixed-asset-20c80b24-ee5c-4c5b-9fee-1b3150620ab8)
- [Next Question If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be _____ ?](https://test-prep.blog/mcq/if-the-beginning-work-in-process-inventory-units-are-2600-units-started-are-9000-18ccbada-a526-46a0-958b-acae83ecab3a)

- [Practice More Accounting Mcqs MCQs](https://test-prep.blog/quiz/smart?category=accounting-mcqs)
- [How We Verify Questions →](https://test-prep.blog/editorial-policy)

## Subject Overview

Explore thousands of solved past paper MCQs for Accounting Mcqs categorized with explanations.

- [Browse All Accounting Mcqs MCQs →](https://test-prep.blog/categories/accounting-mcqs)

## Related Questions

- [The accounting process of gradually converting the unexpired cost of fixed assets into expenses over a series of accounting periods is _____ ?](https://test-prep.blog/mcq/the-accounting-process-of-gradually-converting-the-unexpired-cost-of-fixed-asset-20c80b24-ee5c-4c5b-9fee-1b3150620ab8)
- [If the beginning work in process inventory units are 2600, units started are 9000, ending work in process units are 2300 and the completed good units are 8000 then total spoilage will be _____ ?](https://test-prep.blog/mcq/if-the-beginning-work-in-process-inventory-units-are-2600-units-started-are-9000-18ccbada-a526-46a0-958b-acae83ecab3a)
- [In support of business transaction, any written evidence is called _____ ?](https://test-prep.blog/mcq/in-support-of-business-transaction-any-written-evidence-is-called-ca9aea86-7eac-4b03-b1b0-5325525afaea)
- [The concession received on the price of defective goods is called:](https://test-prep.blog/mcq/the-concession-received-on-the-price-of-defective-goods-is-called-1fd4ecbf-192d-4d6f-a39f-efa7e2f65271)
- [Cash brought by the owner to start business is called _____ ?](https://test-prep.blog/mcq/cash-brought-by-the-owner-to-start-business-is-called-53e7db47-64f4-44b2-a2e4-057d7c2b381f)

---
*Source: https://test-prep.blog/mcq/the-adjustment-to-be-made-for-income-received-in-advance-is-57d21728-9dda-42e6-ad58-84a9157039f3*
*Format: Markdown for Agents (Content Negotiation: text/markdown)*