Fill in the Blanks
Subscription received in advance during the accounting year is _______.
- An expenditure
Subscription received in advance during the accounting year is a liability.
Subscription income which is not related to the current year but received during the year is known as income received in advance. It is also known as unearned income and therefore, these are shown on the Liabilities side of the Balance Sheet.
Concept: Income and Expenditure Account
Is there an error in this question or solution?