FA – Mar/July 2020 – L1 – SA – Q19 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Identifying a current liability in a financial statement

Question

Which of the following items is a current liability in the financial statements of Institute of Chartered Administrators?
A. Subscription in arrears
B. Prepaid salaries
C. Depreciation
D. Accounts receivables
E. Subscription in advance

Answer

E. Subscription in advance

Explanation:
Subscription in advance represents an obligation to provide future services to members, which is a current liability. The other options either represent assets or expenses.

Tags: Current Liability, Financial Statements, Subscription
Level: Level 1

Topic: Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)
Series: MAR/JULY 2020

Uploader: Theophilus

FA – Mar/July 2020 – L1 – SA – Q19 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Identifying a current liability in a financial statement

Our Offerings

Contact Info

My Account

Get In Touch

FA – Mar/July 2020 – L1 – SA – Q19 – Financial Statements (Preparation of Statement of Profit or Loss, Statement of Financial Position, Cash Flow Statement, and Statement of Changes in Equity)

Identifying a current liability in a financial statement

admin

Pick a Form