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  • Deferred Income (CTBA020 - SIGACTB)

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At first, it may seem that all income receipts should belong to this group. However, advance receipts, for which the company has a return obligation (for whatever reason), must be classified in Liabilities since there is a risk of return. E.g.: Rent Received in Advance: in the absence of a clause for reimbursement of amounts already paid, this account can be classified as Deferred Income.