Final answer:
The advance payment received by a company for special-order goods to be manufactured and delivered within 6 months should be reported as a current liability on the balance sheet.
Step-by-step explanation:
When a company receives an advance payment for goods to be manufactured and delivered within 6 months, the payment should be reported on the company's balance sheet as a current liability. This is because the payment is an obligation that the company has to fulfill within a relatively short period of time, specifically within the 6-month timeframe. An advance payment is not reported as revenue upon receipt because the company has not yet earned it by providing the goods or services. Nor is it a long-term liability, as it is due within the operating cycle of one year. It is also not a fixed asset, as it does not represent a tangible item of value the company owns and uses over time.