Accounting Break-Even Analysis Uses

question 45

Multiple Choice

Accounting break-even analysis uses

• A) free cash flows over the entire life of a project.
• B) sales, variable costs and fixed costs over the entire life of a project.
• C) sales, variable costs and fixed costs for a single period.
• D) free cash flows for a single period.

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Definitions:

Adjustments

Journal entries made in accounting records at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Worksheet

An informal document used by accountants to prepare adjusting journal entries and to support the preparation of financial statements.

Beginning Inventory

The market value of products prepared for sale at the initiation of a bookkeeping period.

Merchandise Inventory

Goods or products that a company holds for the purpose of resale to customers, recorded as a current asset on the balance sheet.