Break-even revenues on an accounting basis typically indicate a:
A) negative NPV.
B) positive NPV.
C) high degree of operating leverage.
D) downturn in the business cycle.

Question

Quizplus · Accepted Answer

Break-even revenues on an accounting basis mean that total revenues equal total costs, resulting in zero profit. This typically indicates a negative NPV because it does not account for the time value of money or required return on investment.

Break-Even Revenues on an Accounting Basis Typically Indicate A