passwella.
Menu

WAEC Financial Accounting 2010 Question 20

Question 20

Not-for-Profit Organisations

Subscriptions received in advance are

  1. A.included in the Income and Expenditure Account
  2. B.not included in the Receipts and Payments Account
  3. C.shown as a current asset in the Balance Sheet
  4. D.shown in the Balance Sheet as a current liability
Show the answer and explanation

Answer: D (shown in the Balance Sheet as a current liability)

Explanation

Subscriptions paid in advance are owed to members as next year's membership, so they are a current liability.