BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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current liability
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current asset
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tangible assets
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long-term liability
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Detailed explanation-1: -’Subscriptions owing’ is usually treated as an asset of the organisation. However, experienced treasurers will tell you that subscriptions owing for a long time are usually never paid. A lot of clubs do not therefore bring in unpaid subscriptions as an asset in the statement of financial position.
Detailed explanation-2: -Outstanding subscription is an asset for a non-profit organisation as it is receivable from its members.
Detailed explanation-3: -Outstanding Subscription (subscription owing) It is that amount of Subscription which has been due from Previous year(s) and still remains unpaid. Therefore, It is deducted while ascertaining Subscription received during the Current Year and on the Other hand, it is shown on the Assets side of Opening Balance Sheet.
Detailed explanation-4: -Explanation: Subscription income which is not related to the current year but received during the year is known as income received in advance. It is also known as unearned income and therefore, these are shown on the Liabilities side of the Balance Sheet.
Detailed explanation-5: -Outstanding Subscription is shown on the Assets side of the Balance Sheet.