On a CVP Graph, in the Area Where the Revenue

question 79

Multiple Choice

On a CVP graph, in the area where the revenue line appears above the total cost line, the vertical distance separating the two lines represents what?

• A)Contribution margin
• B)Operating loss
• C)Operating income
• D)Variable costs

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Definitions:

Discount on Bonds Payable

The gap between the nominal value of a bond and the price it is sold at when this price is lower than the bond's nominal value.

Redeems

The act of repaying or buying back something, such as a company repurchasing its own shares or a bond issuer paying back the principal at maturity.

Discount on Bonds Payable

The difference between the face value of bonds and their selling price when issued at less than their face value.

Journal Entry

A record in the accounting books that represents a transaction and its effect on various accounts, typically involving a debit and credit.