The 'Cost Volume Profit' (CVP) analysis is a tool for: MCQ with Answer and Explanation

Question
The 'Cost Volume Profit' (CVP) analysis is a tool for:
A. Audit
B. Inventory valuation
C. Tax planning
D. Understanding relationship between cost, volume, and profit
Answer: Option D
Solution (By JKSSB Mock Tests)
CVP analysis helps in profit planning by studying effects of changes in costs and volume.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The column 'J.F.' in a ledger account stands for:
A. Journal Factor
B. Joint Finance
C. Journal Format
D. Journal Folio
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Correct Answer: Option D

Explanation:
Journal Folio (J.F.) indicates the page number of the journal from where the specific entry was posted.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Termination Benefits' under Ind AS 19 are recognised:
A. At the earlier of when the entity can no longer withdraw the offer or when the entity recognises restructuring costs
B. When the employee retires
C. When paid
D. Over the service period
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Correct Answer: Option A

Explanation:
Termination benefits are recognised at the point of no withdrawal.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A system where accounting data is stored on remote servers accessed via the internet is termed as:
A. Forensic Accounting
B. Cloud Accounting
C. Social Accounting
D. Manual Accounting
Discuss
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Correct Answer: Option B

Explanation:
Cloud accounting allows real-time multi-user access to financial data hosted securely on external servers rather than local hard drives.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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