In Cost-Volume-Profit (CVP) analysis, 'Angle of Incidence' represents: MCQ with Answer and Explanation

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In Cost-Volume-Profit (CVP) analysis, 'Angle of Incidence' represents:

A. The angle between total sales line and total cost line above the BEP

B. The point of zero profit

C. The percentage of variable cost to sales

D. The angle of the fixed cost line

Answer: Option A

Solution (By JKSSB Mock Tests)

A wider angle of incidence on a break-even chart indicates a higher rate of profit generation once the break-even point is crossed.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Which of the following is a 'Liability of a Partner' in a general partnership?

A. Limited to his capital

B. Limited to firm's assets

C. Only for his own acts

D. Unlimited

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Correct Answer: Option D

Explanation:
In a general partnership, all partners have unlimited joint and several liability.

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Question #2

The 'Revised Return' under Income Tax can be filed:

A. Only once

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D. Within one year

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Correct Answer: Option C

Explanation:
Revised return can be filed up to 3 months before the end of relevant assessment year or before completion of assessment, whichever is earlier.

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Question #3

Adjusted Purchases is calculated as:

A. Net Purchases - Closing Stock

B. Opening Stock + Net Purchases - Closing Stock

C. Opening Stock + Net Purchases + Direct Expenses

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Correct Answer: Option B

Explanation:
Adjusted purchases represent the cost of materials actually consumed during the year, removing the stock left unsold.

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