Accounting break-even means that the company is able to pay its interest expense and also the dividends shareholders were expecting.

Question

Quizplus · Accepted Answer

This is not an accurate definition of accounting break-even. Accounting break-even refers to the point where a company's total revenues equal its total costs, including both fixed and variable costs. It does not take into account interest expense or dividends paid to shareholders.

Accounting Break-Even Means That the Company Is Able to Pay