The Level of Sales at Which Revenues Equal Expenses and Net

question 80

Multiple Choice

The level of sales at which revenues equal expenses and net income is zero is called the:

• A) break- even point
• B) margin of safety
• C) marginal income point
• D) contribution margin

---

Definitions:

Recorded

The process of documenting financial transactions in the books of accounts as evidence of the transactions.

Relate

To establish a connection or relationship between two or more things.

Balance Sheet Accounts

Balance sheet accounts are the accounts that reflect the assets, liabilities, and shareholders' equity of a company, as recorded on the balance sheet.

Income Statement Accounts

Accounts that are used to prepare the income statement, summarizing a company's revenues, expenses, and profits over a period.