A project that just breaks even on an accounting basis _________________.
A) Does not pay back.
B) Will exactly pay back by the end of the project.
C) Will pay back prior to the end of the project.
D) Will break even on a ﬁnancial basis as well.
E) Will break even on a cash basis as well.

Question

Quizplus · Accepted Answer

Breaking even on an accounting basis means that the project is generating enough revenue to cover all of its costs, but it is not making any profit. This indicates that the project will exactly pay back the initial investment by the end of the project.

A Project That Just Breaks Even on an Accounting Basis