The Amount by Which Sales Can Decrease Before the Company

question 44

True/False

The amount by which sales can decrease before the company incurs an operating loss is called breakeven point.

---

Definitions:

Capital Projects Fund

A fund used by governmental entities to finance major capital outlays, such as buildings, infrastructure, and other significant projects.

Financial Statements

Comprehensive reports that provide information about an organization's financial position, performance, and changes in financial condition.

Enterprise Fund

A fund typically used by government entities to account for operations financed by fees and charges for services provided.

Fund Financial Statements

Financial reports that focus on the assets, liabilities, revenues, and expenses of governmental funds, proprietary funds, or fiduciary activities managed by a government or nonprofit organization.