Assuming All Other Things Are Equal, If There Was a Decrease

question 116

Multiple Choice

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

• A)decreased
• B)increased first, then decreased
• C)increased
• D)remained the same

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting its liquidity.

Cash Paid

The amount of money that has been disbursed or paid out by a business or individual.

Investing Activities

Financial actions involving the purchase and sale of long-term assets and other investments not considered cash equivalents.

Operating Activities

Business activities directly related to the production and delivery of goods and services, affecting the firm's cash flow.