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WAEC Financial Accounting 2015 Question 30

Question 30

Not-for-Profit Organisations

In the balance sheet of a social club, subscription owing is treated as a

  1. A.current liability.
  2. B.current asset.
  3. C.tangible asset.
  4. D.long-term liability.
Show the answer and explanation

Answer: B (current asset.)

Explanation

Subscriptions in arrears are money members owe the club, so they are a current asset.