CAF-1 · Chapter 13 · Question 4 of 15
A sports club has members whose subscriptions are in arrears (unpaid) at the year-end. If the club expects to receive these amounts, how are they classified?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) As an asset (receivable).
Explanation
Subscriptions in arrears are amounts owed by members to the NPO for services already available to them. They are treated as receivables (assets).
More Accounting for NPOs MCQs
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- Q8Which of the following statements replaces the 'Statement of Profit or Loss' for a Non-Profit Organization?
- Q9If an NPO decides to write off unpaid subscriptions from members who have left the club, how is this transaction recorded?
- Q10At year-end, the statement of income and expenditure shows a 'Surplus'. Where is this surplus transferred?