Practice - Subscription Adjustments
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Practice Questions
Test your understanding with targeted questions
What should be done with subscriptions received in advance?
💡 Hint: Think about the timing of when the income is actually earned.
Define 'liability' in the context of subscription adjustments.
💡 Hint: Consider what is owed to members who have paid ahead.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What should a non-trading organisation do when it receives a subscription payment for the next year?
💡 Hint: What is the timing principle in accounting?
True or False: Accrued income is income that has been earned but not received.
💡 Hint: Think about when income is recognized versus when it is paid.
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Challenge Problems
Push your limits with advanced challenges
A non-profit arts organization typically receives ₹2,500 a year in subscriptions. This year, they received ₹1,000 in advance for next year's subscriptions. How should they report this amount correctly in their financial statements?
💡 Hint: Consider how to match income with the services provided.
Consider a situation where an education charity received ₹5,000 in subscriptions but needs to report ₹1,000 as accrued income from the previous year. What should they do?
💡 Hint: Think about the difference between recognized income and realized income.
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