JAMB Accounting 2019 Objective — Question 24

Question 24 of 40 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2019 Objective paper, with the correct answer and a full explanation.

In the balance sheet of a not-for-profit-making organization, subscription paid in advance is regarded as a

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

Explanation

Subscription paid in advance is a liability, because it represents income received in advance (for a future period).

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