A Breakeven Graph Illustrates the Relationship Between

question 24

Multiple Choice

A breakeven graph illustrates the relationship between

• A)Volume and sales price.
• B)Volume and total costs.
• C)Breakeven and operating income.
• D)Sales and costs.

---

Definitions:

Return on Sales

A financial ratio that calculates how efficiently a company is generating profits from its revenue, typically expressed as a percentage of sales revenue that turns into net income.

Ending Cash Balance

The amount of cash on hand at the end of a financial period.

Statement of Cash Flows

A financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Financing Activities

Transactions a company engages in to finance its operations and expansions, such as issuing equity, taking on debt, or repaying loans, reported in the cash flow statement.