Payments received in advance from a customer for a contract can be__________?
ACredited to P&L A/c
BShown as a liability
CEither A or B above
DShown as a deduction from contract work-in-progress on asset side
Correct answer
C. Either A or B above
Explanation
Either A or B above is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.