NECO Book Keeping 2015 Objective — Question 36
Question 36 of 40 from the National Examinations Council (NECO) Book Keeping 2015 Objective paper, with the correct answer and a full explanation.
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Subscription in advance in the balance sheet of a not-for-profit making organization is classified as
- A. current asset
- B. current liabilityCorrect
- C. long-term liability
- D. fixed asset
Explanation
Subscription received in advance represents an amount owed back to members (unearned income), so it is classified as a current liability.
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