Subscriptions received in advance are
-
A.
included in the income and expenditure account -
B.
not included in the receipts and payment account -
C.
shown as a current asset in the balance sheet -
D.
shown in the Balance Sheet as a current liability
Correct Answer: Option D
Explanation
An amount received in advance against which the services are yet to provide is a balance sheet item. Any advance subscription is a liability and to be shown in balance sheet