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WorksheetsBEFA SUBJECT
Total questions: 25
Worksheet time: 26mins
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
Profit and loss account starts with
Net profit
Net loss
Gross profit
None of the above
Assets which are acquired and held permanently and used in the business with the objective of making profit is known as
Intangible assets
Fixed assets
Current assets
None of the above
The ratios which reveal the final result of managerial policies and performance are
Turnover ratios
Solvency ratios
Current ratios
Profitability ratios
A person who owes the money to the business
Supplier
Investor
Creditor
Debtor
Payment of rent to landlord is a/an
Non-economic event
Economic event
Substantial event
None of the above
Managers commission is calculated on
Gross profit
Sales
Notional profit
Net profit
Prepaid expense is a/an _________ to the company
Income
Expense
Liability
Asset
In balance sheet outstanding salaries comes under
Liability
Asset
Income
Expenditure
Which of these is accounting equation?
Capital = Liability + assets
Assets = Liability - capital
Liability = assets + capital
Assets = Liability + capital
Which type of account is entered into profit and loss account?
Personal account
Real account
Nominal account
None of the above
Trading account shows ______ incomes and losses
Production
Sales and Distribution
Administration
None of the above
Administration, sales and distribution incomes and expenditures comes under
Trading account
Profit and loss account
Assets side of balance sheet
Liabilities side of balance sheet
What is main source of revenue in any business?
Purchase
Sales
Dividend
None of the above
Net sales means
Sales + purchases returns
Sales - purchases returns
Sales - sales returns
Sales + sales returns
What is the example of fixed asset
Cash
Stock
Land and buildings
None of the above
