JAMB Accounting 2011 Objective — Question 30

Question 30 of 49 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2011 Objective paper, with the correct answer and a full explanation.

The subscription paid in advance is treated in the balance sheet of a club as

A. A. a surplus
B. B. a liabilityCorrect
C. C. a deficit
D. D. an asset

Explanation

When an income is paid in advance, such as subscription in advance, it is treated as a liability, similar to rental prepayments.

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