Question

In case of a non profit organization rent of building is due but not yet received by it is considered as a/an ______________.

• A. Asset
• B. Liability
• C. Income
• D. Expenditure

Answer 1

Answer: (A)

Asset

When any kind of income is due and has to be received by company in future it is known as accrued income and this type of income is an asset for firm.

Rent for building is due and has to be received by company, so it is an accrued income. Thus, rent to be received is an asset.