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