Which of the following most accurately describes an item of ‘Deferred Income’?

(a) Income reported in the income statement (profit and loss account) that has not yet been earned.

(b) Services provided to customers for which payment has not yet been received.

(c) Income reported in the liability section of the statement of financial position

(balance sheet) because it has not yet been earned.

(d) Income reported as an asset until it is certain that cash can be collected.