Which of the Following Differentiates Accounting Operating Profit Break-Even Point

question 75

Multiple Choice

Which of the following differentiates accounting operating profit break-even point from pre-tax operating cash flow break-even point?

• A) Accounting operating profit break-even point includes interest expense in the numerator, whereas pre-tax operating cash flow does not.
• B) Pre-tax operating cash flow break-even point includes income taxes in the denominator, whereas accounting operating profit break-even point does not.
• C) Accounting operating profit break-even point includes depreciation & amortization in the numerator, whereas pre-tax operating cash flow does not.
• D) Pre-tax operating cash flow break-even point includes interest expense in the numerator, whereas accounting operating profit break-even point does not.