Concept:Subscription in advance is income received before it is earned, so it creates an obligation for the club.
This obligation must be shown as a liability in the balance sheet.
Explanation:Subscription in advance means members have paid their dues for the next accounting period in the current period.
The club has not yet earned this amount because the service or membership period is still to come.
Therefore, the club owes the members either the service in the future or a refund if the service is not provided.
Because it will be settled within the next operating cycle, usually within one year, it is treated as a current liability.
It is not a long-term liability, accumulated fund, or current asset.
Answer:The correct option is B. current liabilities.