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WAEC Financial Accounting 2022 Question 28

Question 28

Not-for-Profit Organisations

Subscriptions in advance is treated in the balance sheet under

  1. A.current liabilities
  2. B.current assets
  3. C.accumulated fund
  4. D.long-term liabilities
Show the answer and explanation

Answer: A (current liabilities)

Explanation

Members have paid for a future period, so the club owes them: a current liability.