BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Subscription received by a school for organising annual function is treated as
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Capital Receipt (i.e., Liability)
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Revenue Receipt (i.e., Income)
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Asset
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None of there
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Explanation:
Detailed explanation-1: -Subscription received by a school for organising annual function is treated as Capital Receipt (i.e., Liability). Explanation: A school’s subscription for organizing an annual function is treated as a capital receipt.
Detailed explanation-2: -Subscription received by a school for organising annual function is treated as Capital Receipt (i.e. liability)
Detailed explanation-3: -Subscription received by an organisation is a revenue receipt.
Detailed explanation-4: -When an income is received in advance it is treated as liability. Subscription received but not yet earned is considered as a liability.
Detailed explanation-5: -(A) Life Membership Subscription is a capital receipt.
There is 1 question to complete.