The adjustment to be made for income received in advance is:
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
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
B. Income received in advance given as an adjustment requires a deduction of the same
from the income amount and disclosure of the same as a liability in the Balance Sheet.