Q. What is the basic exemption limit for individual taxpayers below 60 years of age for FY 2022-23?
-
A.
Rs. 2,50,000
-
B.
Rs. 3,00,000
-
C.
Rs. 5,00,000
-
D.
Rs. 1,50,000
Solution
The basic exemption limit for individual taxpayers below 60 years of age for FY 2022-23 is Rs. 2,50,000.
Correct Answer:
A
— Rs. 2,50,000
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Q. What is the break-even point in CVP analysis?
-
A.
The point where total revenue equals total costs
-
B.
The point where fixed costs are covered
-
C.
The point where variable costs exceed fixed costs
-
D.
The point where profit is maximized
Solution
The break-even point is where total revenue equals total costs, resulting in neither profit nor loss.
Correct Answer:
A
— The point where total revenue equals total costs
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Q. What is the break-even point in sales dollars if the break-even point in units is 1,000 and the selling price per unit is $25?
-
A.
$15,000
-
B.
$20,000
-
C.
$25,000
-
D.
$30,000
Solution
Break-even Sales = Break-even Units * Selling Price per Unit = 1,000 * $25 = $25,000.
Correct Answer:
C
— $25,000
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Q. What is the break-even point in sales dollars if the fixed costs are $100,000 and the contribution margin ratio is 40%?
-
A.
$250,000
-
B.
$400,000
-
C.
$100,000
-
D.
$150,000
Solution
Break-even point in sales dollars = Fixed Costs / Contribution Margin Ratio = $100,000 / 0.40 = $250,000.
Correct Answer:
A
— $250,000
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Q. What is the break-even point in sales dollars?
-
A.
Fixed costs divided by contribution margin ratio
-
B.
Total costs divided by total sales
-
C.
Total variable costs divided by contribution margin
-
D.
Sales revenue minus total costs
Solution
The break-even point in sales dollars is calculated by dividing fixed costs by the contribution margin ratio.
Correct Answer:
A
— Fixed costs divided by contribution margin ratio
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Q. What is the break-even point in units if fixed costs are $10,000 and the contribution margin per unit is $50?
-
A.
100 units
-
B.
200 units
-
C.
300 units
-
D.
400 units
Solution
Break-even point (units) = Fixed costs / Contribution margin per unit = $10,000 / $50 = 200 units.
Correct Answer:
B
— 200 units
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Q. What is the break-even point in units if fixed costs are $10,000 and the contribution margin per unit is $25?
-
A.
400 units
-
B.
500 units
-
C.
600 units
-
D.
300 units
Solution
Break-even point (units) = Fixed costs / Contribution margin per unit = $10,000 / $25 = 400 units.
Correct Answer:
B
— 500 units
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Q. What is the break-even point in units if fixed costs are $10,000, selling price per unit is $50, and variable cost per unit is $30?
-
A.
500 units
-
B.
1,000 units
-
C.
250 units
-
D.
750 units
Solution
Break-even point (units) = Fixed Costs / (Selling Price - Variable Cost) = $10,000 / ($50 - $30) = 500 units.
Correct Answer:
B
— 1,000 units
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Q. What is the break-even point in units if fixed costs are $100,000, variable cost per unit is $20, and selling price per unit is $50?
-
A.
2,000 units
-
B.
1,500 units
-
C.
4,000 units
-
D.
5,000 units
Solution
Break-even point (units) = Fixed Costs / (Selling Price - Variable Cost) = $100,000 / ($50 - $20) = 2,000 units.
Correct Answer:
A
— 2,000 units
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Q. What is the break-even point in units if fixed costs are $12,000 and the contribution margin per unit is $40?
-
A.
300 units
-
B.
400 units
-
C.
500 units
-
D.
600 units
Solution
Break-even point (units) = Fixed costs / Contribution margin per unit = $12,000 / $40 = 300 units.
Correct Answer:
B
— 400 units
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Q. What is the break-even point in units if fixed costs are $20,000 and contribution margin per unit is $5?
-
A.
4,000 units
-
B.
5,000 units
-
C.
2,000 units
-
D.
10,000 units
Solution
Break-even point (units) = Fixed Costs / Contribution Margin per unit = $20,000 / $5 = 4,000 units.
Correct Answer:
B
— 5,000 units
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Q. What is the break-even point in units if fixed costs are $40,000, selling price per unit is $80, and variable cost per unit is $50?
-
A.
800 units
-
B.
1,000 units
-
C.
1,200 units
-
D.
600 units
Solution
Break-even point (units) = Fixed Costs / (Selling Price - Variable Cost) = $40,000 / ($80 - $50) = 1,000 units.
Correct Answer:
B
— 1,000 units
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Q. What is the break-even point in units if fixed costs are $50,000, selling price per unit is $25, and variable cost per unit is $15?
-
A.
2,500 units
-
B.
5,000 units
-
C.
3,000 units
-
D.
4,000 units
Solution
Break-even point = Fixed Costs / (Selling Price - Variable Cost) = 50000 / (25 - 15) = 2500 units.
Correct Answer:
A
— 2,500 units
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Q. What is the break-even point in units if fixed costs are $50,000, variable cost per unit is $20, and selling price per unit is $50?
-
A.
1,000 units
-
B.
2,000 units
-
C.
1,500 units
-
D.
2,500 units
Solution
Break-even point = Fixed Costs / (Selling Price - Variable Cost) = 50,000 / (50 - 20) = 1,000 units.
Correct Answer:
B
— 2,000 units
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Q. What is the break-even point in units?
-
A.
Total fixed costs divided by contribution margin per unit
-
B.
Total variable costs divided by selling price
-
C.
Total sales revenue divided by total costs
-
D.
Total fixed costs divided by selling price
Solution
The break-even point in units is calculated by dividing total fixed costs by the contribution margin per unit.
Correct Answer:
A
— Total fixed costs divided by contribution margin per unit
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Q. What is the contribution margin if the selling price is $200 and variable costs are $120?
-
A.
$80
-
B.
$120
-
C.
$200
-
D.
$320
Solution
Contribution Margin = Selling Price - Variable Costs = $200 - $120 = $80.
Correct Answer:
A
— $80
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Q. What is the contribution margin if the selling price is $200, variable costs are $120, and fixed costs are $50?
-
A.
$80
-
B.
$120
-
C.
$50
-
D.
$200
Solution
Contribution Margin = Selling Price - Variable Costs = $200 - $120 = $80.
Correct Answer:
A
— $80
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Q. What is the contribution margin in CVP analysis?
-
A.
Sales revenue minus fixed costs
-
B.
Sales revenue minus variable costs
-
C.
Total costs minus total revenue
-
D.
Net income before taxes
Solution
The contribution margin is calculated as sales revenue minus variable costs.
Correct Answer:
B
— Sales revenue minus variable costs
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Q. What is the contribution margin in marginal costing?
-
A.
Sales Revenue - Variable Costs
-
B.
Sales Revenue - Fixed Costs
-
C.
Total Costs - Profit
-
D.
Sales Revenue - Total Costs
Solution
The contribution margin is calculated as Sales Revenue minus Variable Costs.
Correct Answer:
A
— Sales Revenue - Variable Costs
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Q. What is the contribution margin per unit if the selling price is $80 and variable costs are $50?
-
A.
$30
-
B.
$50
-
C.
$80
-
D.
$20
Solution
Contribution Margin per unit = Selling Price - Variable Costs = $80 - $50 = $30.
Correct Answer:
A
— $30
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Q. What is the correct journal entry for the distribution of profits among partners?
-
A.
Debit Profit and Loss Account, Credit Partner's Capital Accounts
-
B.
Debit Partner's Capital Accounts, Credit Profit and Loss Account
-
C.
Debit Partner's Capital Accounts, Credit Cash
-
D.
Debit Cash, Credit Partner's Capital Accounts
Solution
The distribution of profits is recorded by debiting the profit and loss account and crediting the partners' capital accounts.
Correct Answer:
A
— Debit Profit and Loss Account, Credit Partner's Capital Accounts
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Q. What is the double declining balance method of depreciation?
-
A.
A method that accelerates depreciation.
-
B.
A method that spreads depreciation evenly.
-
C.
A method that only applies to intangible assets.
-
D.
A method that does not consider salvage value.
Solution
The double declining balance method accelerates depreciation by applying a constant rate to the declining book value of the asset.
Correct Answer:
A
— A method that accelerates depreciation.
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Q. What is the double-entry accounting principle?
-
A.
Every transaction affects only one account
-
B.
Every transaction affects two or more accounts
-
C.
Only cash transactions are recorded
-
D.
Only credit transactions are recorded
Solution
The double-entry accounting principle states that every transaction affects at least two accounts.
Correct Answer:
B
— Every transaction affects two or more accounts
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Q. What is the due date for filing income tax returns for individuals for the financial year 2022-23?
-
A.
30th September 2023
-
B.
31st July 2023
-
C.
31st March 2023
-
D.
15th August 2023
Solution
The due date for filing income tax returns for individuals is 31st July of the assessment year.
Correct Answer:
B
— 31st July 2023
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Q. What is the due date for filing income tax returns for individuals in India for the financial year 2022-23?
-
A.
30th June 2023
-
B.
31st July 2023
-
C.
31st August 2023
-
D.
31st December 2023
Solution
The due date for filing income tax returns for individuals in India for the financial year 2022-23 is 31st July 2023.
Correct Answer:
B
— 31st July 2023
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Q. What is the effect of a $500 error in recording a cash sale on the trial balance?
-
A.
Trial balance will show a $500 debit excess
-
B.
Trial balance will show a $500 credit excess
-
C.
Trial balance will balance correctly
-
D.
Trial balance will show a $1000 error
Solution
If a cash sale of $500 is recorded incorrectly, it will create a $500 debit excess in the trial balance.
Correct Answer:
A
— Trial balance will show a $500 debit excess
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Q. What is the effect of a $500 purchase of inventory on the trial balance?
-
A.
Increase in assets and increase in liabilities
-
B.
Increase in assets and decrease in equity
-
C.
Increase in assets and increase in expenses
-
D.
No effect on the trial balance
Solution
A $500 purchase of inventory increases assets (inventory) and increases liabilities (accounts payable) if not paid in cash.
Correct Answer:
A
— Increase in assets and increase in liabilities
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Q. What is the effect of a depreciation expense on the financial statements?
-
A.
Increases net income
-
B.
Decreases net income
-
C.
Increases cash flow
-
D.
No effect on net income
Solution
Depreciation expense reduces net income as it is an expense that is deducted from revenues.
Correct Answer:
B
— Decreases net income
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Q. What is the effect of a double entry error on the trial balance?
-
A.
It will still balance
-
B.
It will cause an imbalance
-
C.
It will not affect the trial balance
-
D.
It will only affect the income statement
Solution
A double entry error will cause an imbalance in the trial balance because it affects the equality of debits and credits.
Correct Answer:
B
— It will cause an imbalance
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Q. What is the effect of a partner withdrawing from a partnership on the capital accounts?
-
A.
Increase in total capital
-
B.
Decrease in total capital
-
C.
No effect on total capital
-
D.
Increase in liabilities
Solution
When a partner withdraws, it typically results in a decrease in total capital as their capital account is settled.
Correct Answer:
B
— Decrease in total capital
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