Question on: JAMB Accounting - 2017
Subscription in advance is treated in the balance sheet as a
A
current asset
B
current liability
C
fixed asset
D
long term liability
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Correct Option: B
Subscription in advance represents money received for services or goods that will be provided in the future. Since the organization has an obligation to provide those services or goods, this is a liability. Because it is usually satisfied within a year, it is categorized as a current liability.
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