__________ = income received + o/s income - income received in advance.

Total expense

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Total income

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Asset

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Liability

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Solution

The correct option is B Total income
It is also known as Unearned Income and is received before the related benefits are provided. This revenue is not related to the current accounting period, for example, Rent received in advance, Commission received in advance, etc. It is a personal account and shown on the liability side of a balance sheet.

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What do you understand by income received in advance?

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