Accounting break-even is defined as the sales level that causes the project:
A) Cash flows to equal zero.
B) Discounted cash flows to equal zero.
C) Net income to equal zero.
D) Cash inflows to equal the initial cash outflows.
E) Net income to equal the initial project expenditures.

Question

Quizplus · Accepted Answer

Accounting break-even refers to the point where net income is zero, meaning that revenues equal the sum of fixed and variable costs, not considering the time value of money.

Accounting Break-Even Is Defined as the Sales Level That Causes