Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 34 - No. 34)

Which of the following is an example of prepaid income?

Cash received for services to be provided in the future

Salary owed to an employee at the end of the period

Interest earned on a savings account

Invoice sent to a customer for services already provided

Prepaid income refers to income received in advance of earning it.