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WAEC Financial Accounting 2024 Question 21

Question 21

Not-for-Profit Organisations

Subscriptions classified in the balance sheet as a current asset is subscriptions

  1. A.in advance.
  2. B.in arrears.
  3. C.received for the year.
  4. D.income for the year.
Show the answer and explanation

Answer: B (in arrears.)

Explanation

Subscriptions in arrears are owed by members, so they are a current asset; subscriptions in advance are a liability.