Subject: FPSC Past Papers

Explanation
A purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.

Explanation
A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check.

Explanation
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.

Explanation
Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation.

Explanation
Petty cash book is used to record the day to day small value transactions. Balance lying in petty cash book is as good as cash balance. Cash is an asset for the business.

Explanation
Compensatory errors cannot be revealed on the preparation of trial balance. Compensating Errors are error on the debit side and is compensated by an error of equal amount on the credit side.

Explanation

Explanation
Conservation concept states that "an accountant shouldn't anticipate profit, but must provide for all losses". The concept that an accountant shouldn't anticipate profit, but must provide for all losses is known as The conservatism concept.

Explanation
A purchase book is a special purpose subsidiary book prepared by a business to record all credit purchases.

Explanation
A crossed check is any check that is crossed with two parallel lines, either across the whole check or through the top left-hand corner of the check.

Explanation
Preceding working day the bill will mature if the date of maturity of a bill is a holiday, where the date of maturity is a public holiday, the instrument will become due on the preceding business day.

Explanation
Reserve Capital is defined as a part of subscribed uncalled capital, which will not be called up until and unless the company goes into liquidation.

Explanation
Petty cash book is used to record the day to day small value transactions. Balance lying in petty cash book is as good as cash balance. Cash is an asset for the business.

Explanation
Compensatory errors cannot be revealed on the preparation of trial balance. Compensating Errors are error on the debit side and is compensated by an error of equal amount on the credit side.

Explanation

Explanation
Conservation concept states that "an accountant shouldn't anticipate profit, but must provide for all losses". The concept that an accountant shouldn't anticipate profit, but must provide for all losses is known as The conservatism concept.

Explanation
In master budgeting, cost drivers for manufacturing overhead costs are direct manufacturing labour-hours and setup labour-hours.

Explanation
A company,  is a legal entity representing an association of people, whether natural, legal or a mixture of both, with a specific objective.

Explanation
 Assets refers to things which have future economic value and bank overdraft is the amount withdrawn in excess of the amount deposited in bank. So, inflow of economic benefits is referred to as Income.