The Accounting Break-Even Point Is That Level of Sales Where

question 75

Multiple Choice

The accounting break-even point is that level of sales where:

• A)sales revenue equals variable costs.
• B)sales revenue equals variable plus fixed costs.
• C)EBIT equals depreciation expense, and, thus cash flow equals zero.
• D)EBIT equals zero.

---

Definitions:

Percent Increases

Percent increases are calculations used to determine the growth rate of a value or quantity over time, expressed as a percentage of its original value.

Balance Sheet Items

Components of a balance sheet which include assets, liabilities, and shareholders' equity at a specific point in time.

Financial Statement Analysis Report

This is a document that includes a detailed assessment of the financial performance, liquidity, solvency, and profitability of a company based on its financial statements.

Key Components

Essential parts or elements that are necessary for the functionality or operation of a system or process.