The Breakeven Point May Be Defined as the Number of Units

question 161

Multiple Choice

The breakeven point may be defined as the number of units a company must sell to do which of the following?

• A)Generate a zero profit
• B)Generate a net loss
• C)Earn more net income than the previous accounting period
• D)Generate a net income

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances from temporary accounts to permanent accounts, thus preparing the accounts for the next period.

Work Sheet Heading

The title section of a work sheet that typically includes the company name, title of the document, and the period covered.

Adjusted Trial Balance

A list of all the accounts of a company, showing the balances after adjustments, used to prepare financial statements.

Adjustments Column

A column in financial statements or ledgers for entries that correct or modify the original amounts for better accuracy.