Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounts for Non Profit Organsiation

Question:

Subscription received in advance by a non profit organization during the current year is a/an:

Options:

Income

Expense

Asset

Liability

Correct Answer:

Liability

Explanation:

The correct answer is option 4- Liability.

Subscription received in advance by a non profit organization during the current year is a liability.

This is a liability as it is related to next year not current year.