Once the product sales revenue is gotten, the main quantity is scheduled as “Received in advance” plus the recognition of revenue postponed. This permits for postponing the recognition of income to a later duration when the company has sufficient cash to pay for the taxation. However, it really is unlawful to control and postpone tax liability that is one’s. A large escalation in the total amount sheet product “Received in advance” will likely attract the eye associated with the taxation authorities.

Item 5: Other Payables

Concealing income as a payable.

Another stability sheet product – similar to “Received in advance” – may be the payables that are“other category. Read More