Explanation

• Federalism divides powers between different levels of government.
• The national government handles broader national matters.
• State or local governments manage matters within their jurisdiction.
• This division helps distribute administrative responsibilities.

Explanation

• In accounting, an economic event occurs when a transaction is recognized and recorded
• Because it has a measurable monetary impact on the financial position of a business, changing its assets, liabilities, or equity.
• Types of Economic Events
• External Transactions
• Internal Events

Explanation

• PI measures investment profitability.
• PI = PV of future cash flows ÷ Initial investment.
• PI of 0.9 is less than 1.
• It generally indicates the investment is not acceptable

Explanation

• The normal balance of a liability account is a credit.
• Recorded on the credit (right) side
• Decrease (-): Recorded on the debit (left) side.
• Common Examples: Accounts payable, loans payable, and accrued expenses.

Explanation

• The natural (or normal) balance of a revenue account is a credit.
• Revenue increases with a credit.
• Revenue decreases with a debit.
• Revenue is reported on the income statement.

Explanation

• Public funds are generally spent by federal, Provincial, and Local Bodies governments.
• These public sector institutions manage budgets collected from taxes and public revenues to provide goods, services, and infrastructure for citizens.

Explanation

• Pakistan's civil service is shaped by its colonial legacy and heavy political interference/patronage.
• It was originally built on British India's centralized structures.
• Since the 1970s, political pressure has replaced merit in postings, promotions, and operations.

Explanation

• Internal Management Accounts are NOT normally presented at an Annual General Meeting (AGM).
• Annual Financial Statements are presented to shareholders at the AGM.
• The Auditor’s Report is also presented as part of the annual reporting process.
• The Director’s Report provides information about the company’s performance and affairs.
• Internal management accounts are mainly prepared for internal decision-making and management use.

Last verified on 13-08-2026

Explanation

• Leasing is a Financing decision.
• A method of acquiring assets through rental payments rather than purchase.
• Avoids a large upfront cash outlay.
• An alternative to debt or equity for funding assets.

Additional information 

• Lessor: The legal owner who provides the asset
• Lessee: The user who pays to use the asset without owning it.

Last updated on 25-08-2026

Explanation

• Market power: influencing price above the competitive level
• Firm has some ability to affect its product's market price
• Usually linked to limited competition
• Enables charging above the competitive price

Last updated on 25-08-2026 by NS