CAF-1 · Chapter 13 · Question 15 of 15
What is the formula used in a subscription T-account to find the subscription income for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Cash received - Opening Arrears + Closing Arrears + Opening Advance - Closing Advance
Explanation
To match income to the correct period, you take cash received, subtract amounts for last year (opening arrears), add amounts for this year not yet paid (closing arrears), add amounts paid last year for this year (opening advance), and subtract amounts paid this year for next year (closing advance).
More Accounting for NPOs MCQs
- Q2In the financial statements of an NPO, what is the equivalent of 'Equity' or 'Retained Earnings'?
- Q3If a club member pays their annual subscription for the upcoming year in advance, how is this recorded in the current year's financial…
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- Q5Under the deferral method, how should an NPO account for a tangible capital asset procured using a restricted government grant?
- Q6An NPO runs a small coffee bar to generate extra funds. How should the financial results of this trading activity be presented?