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WAEC Financial Accounting 1992 Question 15

Question 15

Not-for-Profit Organisations

Subscription in advance is treated in the Balance Sheet of a club as

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

Answer: A (current liability)

Explanation

Subscriptions received for next year are owed back to members in services, so they are a current liability.