A Business Can Use ________ Statement to Create a Line

question 67

Multiple Choice

A business can use ________ statement to create a line chart that shows income and expenses and the projected break-even point.

• A)a profit and loss
• B)a summary
• C)an estimated income
• D)a break-even

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Definitions:

Debit Side

The left side of a ledger account that is used to record increases in assets, expenses, and decreases in liabilities, equity, and income.

Asset Accounts

Ledger accounts that record a company's owned resources with economic value expected to provide future benefits.

Compound Entry

An accounting entry that involves more than two accounts, where there are multiple debits, credits, or both.

Three Accounts

A fundamental concept in accounting that typically refers to the three major financial statements: the balance sheet, income statement, and cash flow statement.