ABF 2.2 Key Terms

What does the term "Breakeven (B/E)" mean?

• Having income greater than expenditure

• Having income equal to expenditure

• Having income less than expenditure

• Having no income or expenditure

What is "Depreciation"?

• Increase in the value of assets

• Decrease in the value of assets due to wear and tear

• The original cost of an asset

• The market value of an asset

What is the "Principal" in financial terms?

• The interest on a loan

• The original amount of money lent

• The profit from a business

• The depreciation of an asset

What does "Return on assets (ROA)" measure?

• The total expenses of a business

• The ratio of net income to total assets

• The market value of an asset

• The original cost of an asset

What is "Salvage value"?

• The original cost of an asset

• The market value of a depreciable asset when sold

• The depreciation of an asset

• The profit from a business