Explanation

When goods are purchased on credit bases then that person is known as creditor.

Explanation

Explanation

Margin of safety is computed as Actual sales - break even sales 

The margin of safety formula is equal to current sales minus the break even point, divided by current sales.

Explanation

Revenue expenditure refers to the expenses incurred by a business in its day-to-day operations to generate revenue.

Examples of revenue expenditure include salaries and wages, rent, utility bills, advertising costs, and raw material expenses.

Explanation

The closing process involves separate entries to close:

The correct sequencing of the entries is:

 revenues 

expenses

 income summary

expenses

Explanation

 Cash flow statement shows the flow of cash and cash equivalents during the financial period 

Explanation

I am allergic to cats, ­­­­yet I have three of them.

Explanation

hedge

a row of bushes or small trees planted close together, especially when forming a fence or boundary; hedgerow:

small fields separated by hedges.

any barrier or boundary: a hedge of stones.

Explanation

Sales mix:

While the overall sales mix can affect profitability,

CVP analysis assumes that the relative proportions of different products sold (i.e., the sales mix) remain constant within a given period.

If the sales mix changes significantly, the calculations based on the initial assumption will be inaccurate

Sales Mix is not involved in CVP analysis.

Cost consist of fixed and variable cost.

Cost volume profit involves selling price, level of activity,fixed cost but does not include sale mix.

It states how profit change because of change in volume,fixed cost and selling price.

Explanation

Selecting a project with the quickest payback should be the criteria of selection when choosing among mutually exclusive projects