passwella.
Menu

JAMB Principles of Accounts 2004 Question 31

Question 31

Not-for-Profit Organisations

In the balance sheet of a not-for-profit-making organization, subscription paid in advance is regarded as a

  1. A.current asset
  2. B.current liability
  3. C.capital
  4. D.reserve
Show the answer and explanation

Answer: B (current liability)

Explanation

Subscriptions paid in advance are owed back to members as future services, so they are a current liability.