Which of the Following Statements Are Correct Concerning the Accounting

question 18

Multiple Choice

Which of the following statements are correct concerning the accounting break-even point? I.The net income is equal to zero at the accounting break-even point.
II) The net present value is equal to zero at the accounting break-even point.
III) The quantity sold at the accounting break-even point is equal to the total fixed costs plus
Depreciation divided by the contribution margin.
IV) The quantity sold at the accounting break-even point is equal to the total fixed costs divided by
The contribution margin.

• A)I and III only.
• B)I and IV only.
• C)II and III only.
• D)II and IV only.
• E)I, II, and IV only.

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Definitions:

Equations

Mathematical statements that assert the equality of two expressions.

Economic Model

A simplified representation of economic processes, often using mathematical formulas, to help analyze and predict economic outcomes.

Value Judgments

Assessments or opinions formed about the worth or importance of something, often based on personal or cultural beliefs rather than objective criteria.

Far More Complex

This term suggests that something is much more complicated or intricate than it may initially appear.