Question

138. In break-even analysis: a) when total costs = total revenues, it is the breakeven point b) Very important to know for a new venture the entrepreneur c) Provides a good account of the notential of the new venture to investors d) All of the above are true 139.In an income statement: a) Operating profit measures financial leverage b) Gross profit - operating expenses = operating profit c) Both of the above are true d) None of the above is true 140.In a cash flow statement the following activity is reported a) operating activities b) investing activities c) financing activities d) all of the above 141. Two basic components of a business model: a) Revenue model and cost model b) Revenue model and sales model c) Distribution model and sales model d) Strategy model and distribution model 31

help with 138, 139, 140. 141

Answer 1

Answer 138

In Break even analysis break even point is when total cost= total revenue hence a is correct. Option b and c is also correct

Hence all the options are correct I.e option d is answer

Answer 139

Operating profit does not measure financial leverage.

Operating profit il= gross profit-operating expense

Hence b is correct option

Answer 140

In cash flow statement operating, financing and investing activities are reported.

Hence option d is correct

Answer 141