Question on: JAMB Accounting - 2023
Subscription in advance is treated in the balance sheet as a
A
fixed asset
B
long term liability
C
current asset
D
current liability
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Correct Option: D
Subscription in advance represents revenue that has been received in advance for services or products that will be provided in the future. Since it is a liability for the company, it is categorized as a current liability on the balance sheet until the services or products are delivered or the obligation is fulfilled.
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