Match the following-
|
List 1 |
List 2 |
|
1) Subscription at the end of the year |
a) Deducted |
|
2) Subscription at the beginning of the year |
b) Added |
|
3) Advance Insurance |
c) Liabilities side |
|
4) O/s salary |
d) Assets side |
Answer & explanation
Correct answer: option 2
* Subscription at the end of the year is added to the subscription received during the year because it is related to the current year.
* Subscription at the beginning of the year is deducted from the subscription received during the year because it is related to the previous year.
* Advance insurance is a prepaid expenses which is a asset.
* Outstanding salary is not paid by the organisation but it has to be paid so it is a liability.