Which is the correct answer?

c

c

C is the right answer, Revenue recognition principle tells us that Revenue is not recognized before it is earned, advances will be recoded as

Advance   Dr,

Unearned Revenue   Cr.

Option C

the answer is

C . Revenue recognition principle

Revenue recognition principle

Its option C

According to the IAS-18 Revenue recognition it says.

Sales can not be recognize until the criteria met.

Revenue from the sale of goods shall be recognized when all the following conditions have been satisfied:

1- the entity has transferred to the buyer the significant risks and rewards of ownership of the goods;

the entity retains neither continuing managerial involvement to the degree usually associated with

ownership nor effective control over the goods sold;

2- the amount of revenue can be measured reliably;

3-it is probable that the economic benefits associated with the transaction will flow to the entity; and

the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Since sales is not yet been recognized it surely must be a liability until its being recognized.

                                              Option C would be the right answer

Option C will be the answer. Advance payments will be liability as the services are yet to be provided.

correct answer is c 

B is the relevant answer to describe the position in a Financial statements.