BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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current asset
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fixed assets
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current liability
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accumulated fund
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Detailed explanation-1: -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-2: -An advance receipt of subscription from a member of the non-profit organisation is considered as a liability.
Detailed explanation-3: -Outstanding subscription is an asset for a non-profit organisation as it is receivable from its members.
Detailed explanation-4: -It is the amount paid by members to keep their membership alive. An advance receipt of subscription from a member is an income received in advance. So it is treated as liability.