At the accounting break-even point, ______________.
A) Net present value is positive.
B) Net income is positive.
C) The project operating cash ﬂow is equal to depreciation expense.
D) A project's cash ﬂow is equal to zero.
E) The price per unit and variable cost per unit are equal.

Question

Quizplus · Accepted Answer

At the accounting break-even point, the revenue from a project is equal to the total expenses, therefore the operating cash flow is equal to the depreciation expense. Choices A, B, and D do not necessarily apply at the break-even point, and choice E refers to the contribution margin break-even point.

At the Accounting Break-Even Point, ______________