Refer to the Following Break-Even Chart to Answer the Question(s)below

question 94

Multiple Choice

Refer to the following break-even chart to answer the question(s) below:

-Line T is the ________ line, while line S is the ________ line.

• A)total revenue; total expense
• B)total expense; total revenue
• C)fixed cost; variable cost
• D)variable cost; fixed cost

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Definitions:

Retained Earnings

Accumulated net incomes of a company not paid out as dividends but retained for reinvestment in the business or to pay off debts.

Shareholders' Equity

This represents owners' claims after all liabilities have been deducted from the total assets of a company.

Total Liabilities

The sum of all financial obligations a company owes to outside parties.

Dividends Declared

An announcement by a company's board of directors of a dividend payment to shareholders, indicating the amount and payment date.