The Adjusted Trial Balance for Lamar Corp

question 243

Multiple Choice

The adjusted trial balance for Lamar Corp. at the end of the current year, 2018, contained the following accounts. The total long-term liabilities reported on the balance sheet are

• A) $1,945,000.
• B) $1,935,000.
• C) $2,095,000.
• D) $2,085,000.

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Definitions:

Contribution Margin

The selling price per unit minus the variable cost per unit, used to cover fixed costs and to generate profit.

Breakeven

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share (EPS) to fluctuations in its operating income due to changes in its capital structure.

Financial Risk

Facing potential financial losses in an investment or entrepreneurial endeavor.