Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Subscription received in advance during the current year is :

Options:

An Income

An Asset

A Liability

An Expense

Correct Answer:

A Liability

Explanation:

The correct answer is Option (3) - A Liability.

Subscription Received in Advance is a liability because the organization has received cash in advance for services (subscriptions) that it has not yet provided.