Subscription in advance is treated in the balance sheet as a
-
A.
current asset -
B.
current liability -
C.
fixed asset -
D.
long term liability
Correct Answer: Option B
Explanation
current assets are assets of the company that can be easily converted to cash when needed
current liability: this is the liability owned to outsiders but still enjoying its benefit within a year e.g creditors, wages in arrears