The Vertical Axes on a Break-Even Chart and a Profit-Volume

question 64

Multiple Choice

The vertical axes on a break-even chart and a profit-volume chart respectively are:

• A)profit: sales revenue and costs.
• B)volume of output: volume of output.
• C)sales revenue and costs: profit.
• D)fixed costs: sales revenue.

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Definitions:

Journal

A basic accounting record where all the financial transactions of a business are initially recorded in chronological order before being posted to accounts in the ledger.

Liability Accounts

Accounts on a balance sheet representing what a company owes to others, including loans, mortgages, and accounts payable.

Debits

Entries on the left-hand side of an accounting ledger, indicating increases in assets or expenses or decreases in liabilities or equity.

Transactions

Economic activities or events that affect the financial position of a company and can be quantified in monetary terms.