Subject: FPSC Past Papers

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 Assets refers to things which have future economic value and bank overdraft is the amount withdrawn in excess of the amount deposited in bank.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.

Explanation
Equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset. Equity represents the shareholders' stake in the company, identified on a company's balance sheet.

Explanation
Revenue is  income, especially when of an organization and of a substantial nature.

Explanation
Returns inwards are goods returned to the selling entity by the customer, such as for warranty claims or outright returns of goods for a credit. For the customer, this results in the following accounting transaction: A debit (reduction) of accounts payable. A credit (reduction) of purchased inventory.

Explanation
Larger number of manager subordinates and higher level manager are termed as broader responsibility center.

Explanation
A manager who is responsible for only cost of company belongs to cost center.

Explanation
Each adjusting entry has a dual purpose :  to make the income statement report the proper revenue or expense and  to make the balance sheet report the proper asset or liability.

Explanation
Accounts payable is the money a company owes its vendors, while accounts receivable is the money that is owed to the company, typically by customers.

Explanation

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 Assets refers to things which have future economic value and bank overdraft is the amount withdrawn in excess of the amount deposited in bank.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.

Explanation
Equity as a degree of residual ownership in a firm or asset after subtracting all debts associated with that asset. Equity represents the shareholders' stake in the company, identified on a company's balance sheet.

Explanation
Revenue is  income, especially when of an organization and of a substantial nature.

Explanation
Returns inwards are goods returned to the selling entity by the customer, such as for warranty claims or outright returns of goods for a credit. For the customer, this results in the following accounting transaction: A debit (reduction) of accounts payable. A credit (reduction) of purchased inventory.

Explanation
Larger number of manager subordinates and higher level manager are termed as broader responsibility center.

Explanation
A manager who is responsible for only cost of company belongs to cost center.

Explanation
Each adjusting entry has a dual purpose :  to make the income statement report the proper revenue or expense and  to make the balance sheet report the proper asset or liability.

Explanation
Accounts payable is the money a company owes its vendors, while accounts receivable is the money that is owed to the company, typically by customers.

Explanation

Explanation
The purpose of adjusting entries is to convert cash transactions into the accrual accounting method.