A Statement of Financial Position Shows

question 153

Multiple Choice

A statement of financial position shows

• A) revenues, liabilities, and equity.
• B) expenses, dividends and equity.
• C) revenues, expenses, and dividends.
• D) assets, liabilities, and equity.

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Definitions:

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net gain or loss.

Contribution Margin Ratio

A financial metric indicating how much of each sales dollar contributes to fixed costs and profit after variable costs are covered.

Target Pre-tax Income

The income goal set by a company before any taxes are applied.

Contribution Margin Per Unit

The difference between the selling price per unit and the variable cost per unit.