Financial Terms “B”


Financial Terms Dictionary

B


Balance Sheet

The balance sheet is one of the three financial statements. The balance sheet format shows assets, liabilities, and equity. This statement shows the accounting equation where assets equal liabilities plus equity. The balance sheet is also called the statement of financial position.


Breakeven Analysis

Breakeven analysis is a margin of safety calculation. The analysis estimates a company’s revenues, variable costs, and fixed costs. Breakeven analysis is also called cost-volume-profit (CVP) analysis. The breakeven point is when the total costs equal total revenue. There is zero profit at the breakeven point.


Breakeven Point

The breakeven point is when the total revenue equals total costs. Profit is $0 at the breakeven point.

breakeven point formula

Jeff Mankin

Jeff Mankin teaches financial literacy. His website is FinallyLearn.com.

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