The 'Break-Even Point' in units is calculated as: MCQ with Answer and Explanation

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The 'Break-Even Point' in units is calculated as:

A. Fixed cost / Contribution per unit

B. Profit / Sales

C. Fixed cost / Variable cost per unit

D. Sales / Contribution per unit

Answer: Option A

Solution (By JKSSB Mock Tests)

BEP (units) = Fixed Costs / (Selling price per unit - Variable cost per unit) = Fixed Cost / Contribution per unit.

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

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When a new partner brings in capital for his share of goodwill in cash, the journal entry is:

A. Cash A/c Dr. To Partner's Capital A/c

B. Cash A/c Dr. To Premium for Goodwill A/c

C. Premium for Goodwill A/c Dr. To Cash A/c

D. Cash A/c Dr. To Goodwill A/c

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Correct Answer: Option B

Explanation:
If the incoming partner pays for goodwill privately or through firm, if paid to firm, entry is Cash Dr. To Premium for Goodwill A/c.

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Question #2

Under Section 80D of the Income Tax Act, a deduction is allowed for:

A. Life insurance premiums

B. Donations to charities

C. Interest on education loan

D. Medical insurance premiums

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Correct Answer: Option D

Explanation:
Section 80D provides deductions for premiums paid toward health/medical insurance for self, family, and parents.

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Question #3

The 'Cryptocurrency' as per Indian laws is:

A. Not considered legal tender but taxed

B. Banned completely

C. Only allowed for banks

D. Legal tender

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Correct Answer: Option A

Explanation:
Cryptocurrencies are not legal tender in India but gains are taxed.

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

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