Answer
Advances received on sales contract should be shown in the balance sheet as a current liability.
Work Step by Step
Advances received on sales contract is like money received before it is earned, and this is a liability.
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 5 - Balance Sheet and Statement of Cash Flows - Questions - Page 279: 16c
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