Q310
Amount of money by which total revenues exceed breakeven revenues is classified as
A.
margin of safety
AnswerB.
margin of profit
C.
margin of loss
D.
margin of income
Answer: Option A
Solution
Answer: Option A
Solution:
Amount of money by which total revenues exceed breakeven revenues is classified as margin of safety. Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value.