Final answer:
The true statements are that accounting profit only considers historical costs and does not account for the time value of money, while present value break-even analysis focuses on future cash flows and the present discounted value of those flows.
Step-by-step explanation:
Of the statements provided, the following ones are true in the context of comparing accounting profit and present value break-even points:
- Accounting profit considers only historical costs.
- Present value break-even is concerned with future cash flows.
- Accounting profit does not incorporate the time value of money.
Whereas accounting profit is a cash concept that involves total revenue minus explicit costs, or the difference between dollars brought in and dollars paid out, present value break-even analysis weighs the present costs of investment against the present discounted value of future benefits. It is notable that while a business pays income taxes based on its accounting profit, its economic success depends on economic profit which accounts for both explicit and implicit costs, including the time value of money which is overlooked by accounting profit.