Taxpayers Should Keep All Supporting Documentation (Credit Card Statements, Etc

question 52

True/False

Taxpayers should keep all supporting documentation (credit card statements, etc.) for a tax return for at least three years after the return is filed.

---

Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain, and where the business is essentially covering all its costs.

Contribution Margin Ratio

A measure of a company's ability to cover variable costs with sales, calculated as (Sales - Variable Costs)/Sales.

Fixed Costs

Expenditures on items like rent, salaries, and insurance that stay fixed, irrespective of production or sales figures.

Contribution Margin Ratio

A financial metric that calculates the percentage of sales revenue that exceeds variable costs, contributing toward fixed costs and profit.