The point at which Total Revenue equals Total Cost is known as: MCQ with Answer and Explanation

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The point at which Total Revenue equals Total Cost is known as:

A. Shut-down Point

B. Break-Even Point

C. Maximum Profit Point

D. Margin of Safety

Answer: Option B

Solution (By JKSSB Mock Tests)

At the break-even point, a business makes neither a profit nor a loss (Total Revenue = Total Costs).

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

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Question #1

Which document is issued by an unregistered supplier under GST when they sell exempted goods?

A. Tax Invoice

B. Bill of Supply

C. Receipt Voucher

D. Debit Note

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Correct Answer: Option B

Explanation:
A Bill of Supply is issued instead of a Tax Invoice when dealing in exempted goods or when the supplier is under the Composition Scheme.

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

Question #2

A social audit is typically conducted by:

A. Only management

B. Only chartered accountants

C. Only government officials

D. Stakeholders, including community representatives

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Correct Answer: Option D

Explanation:
Social audit involves participation of various stakeholders, including the local community, to evaluate social performance.

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

Question #3

The 'Correction of an Error' (Ind AS 8) is done:

A. Prospectively

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Correct Answer: Option C

Explanation:
Material prior period errors are corrected retrospectively.

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

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