All of the Following Are Significant Contributions That the Journal

question 83

Multiple Choice

All of the following are significant contributions that the journal makes to the recording process except the journal

• A)discloses the complete effect of a transaction in one place.
• B)helps prevent or locate errors because debits and credits can be readily compared.
• C)keeps complete information about changes in a specific account balance in one place.
• D)provides a chronological record of transactions.

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Definitions:

Contribution Margin Ratio

The ratio of Contribution Margin to Sales Revenue, measuring the percentage of each sales dollar available to cover fixed costs and profit.

Fixed Costs

Unvarying costs that do not fluctuate with changes in production or sales levels, such as office rent, staff wages, and insurance coverage.

Break-Even Point

The point where the amount produced or sold matches the overall expenses, leading to neither a profit nor a loss.

Contribution Margin

A profitability metric that calculates the amount of revenue remaining after deducting variable costs, used to cover fixed costs and generate profit.