BEFA SUBJECT

The break-even point can be defined as?

• The level of activity at which there is neither profit nor loss

• The level of activity where cash flow is zero

• The level of activity where profits equal fixed costs

• The level of activity where variable costs are covered by sales revenue

Contribution margin is the difference between sales and____________?

• Fixed cost

• Variable cost

• Profit

• Revenue

In a Market structure called 'Monopoly’ there will be

• One seller

• Two sellers

• Few sellers

• Many sellers

1. The basic sequence in the accounting process can best be described as?

• A) Transaction, journal entry, ledger account, trading, profit and loss account, trial balance

• Transaction, ledger account, journal entry, trial balance, trading, profit and loss account

• Transaction, journal entry, ledger account, trial balance, trading, profit and loss account

• A) Transaction, journal entry, trial balance, ledger account, trading, profit and loss account

Which of the following account will be credited, if business bought goods on credit from Mr. Z

• Purchases account

• Mr. Z account

• Cash account

• Sales account

Which of the following items of balance sheet are useful in evaluating a company’s liquidity?

• Current assets and other assets

• Current assets and current liabilities

• Current liabilities and plant and equipment

• Current liabilities and plant and equipment

Patents, trademarks and copy rights are

• Current assets

• Fixed assets

• Intangible assets

• Investments

Net profit is computed in the:

• Trading account

• Balance sheet

• Trial balance

• Profit and loss account

If the owner take goods for his/her own use, then we should:

• Debit Drawings Account: Credit Stock Account

• Debit Drawings Account, Credit Purchases Account

• Debit Sales Account: Credit Stock Account

• Debit Purchases Account: Credit Drawings Account

According to which concept the owners are considered to be different from the business

• Going concern concept

• Money measurement concept

• Business entity concept

• accounting period concept