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Sunday, 12 April 2026
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Subscription in arrears are ___

Subscription in arrears are ___
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Credited to the income and expenditure account and shown as a liability in the balance sheet
  • B Debited to the income and expenditure account and shown as an asset in the balance sheet
  • C Credited to the income and expenditure account and shown as an asset in the balance sheet
  • D Debited to the income and expenditure account and shown as a liability in the balance sheet.
Correct Answer: Option C
Explanation:
Subscription in arrears refers to income earned in the current period but not yet received by the end of the period.

It must be:

Credited to the Income and Expenditure Account (because it's income related to the current year).

Shown as an asset in the Balance Sheet (since it's money owed to the organization).

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