JAMB Accounting 2018 Objective — Question 24

Question 24 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2018 Objective paper, with the correct answer and a full explanation.

Subscriptions received during the year #30,000. Subscriptions owed last year #4,000. Subscriptions received for next year #6,000. The #6,000 subscription received is a

A. capital
B. fixed asset
C. current liabilityCorrect
D. current asset

Explanation

Subscription received in advance (such as the #6,000 received for next year) is a current liability.

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