Which of the Following Statements Are Correct Concerning the Accounting

question 43

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

---

Definitions:

Material

Important. In securities law, a fact is material if a reasonable person would consider it important in his decision to purchase shares or to vote shares.

Rescind

To withdraw, negate, or overturn a law, order, or agreement.

Asserted

Stated with confidence or declared strongly, typically without providing evidence or proof.

Concealment

The act of hiding or withholding information or facts intentionally.