Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounts for Non Profit Organsiation

Question:

Subscription Received for a specific purpose by a non-profit organization is to be treated as:

Options:

Liability

Income

Asset

Expense

Correct Answer:

Liability

Explanation:

Subscription Received for a specific purpose is treated just like other income received for a specific purpose. That's why it will become a liability.