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JAMB Principles of Accounts 2014 Question 28

Question 28

Not-for-Profit Organisations

Subscription in arrears is treated in the balance sheet of a club as

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

Answer: A (current asset.)

Explanation

Members owe the club this money, so it is an amount receivable, a current asset.