NECO Accounting 2022 Objective — Question 28
Question 28 of 50 from the National Examinations Council (NECO) Accounting 2022 Objective paper, with the correct answer and a full explanation.
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Subscription in advance is treated in the balance sheet under
- A. current liabilitiesCorrect
- B. current assets
- C. accumulated fund
- D. long-term liabilities
Explanation
Subscription received in advance is a liability to the organization, since the service period it relates to has not yet arrived.
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