Question

When amount is received for the amount of goods that needs to be provided to a customer in later period is credited to _______ account.

• A. Revenue
• B. Expense
• C. Revenue in advance
• D. Prepaid expense

Answer 1

The correct option is C

Revenue in advance

When amount is received for the amount of goods that needs to be provided to a customer in later period, it is considered as revenue in advance as still there is an obligation to provide goods in future period.