When Using the Percent-Of-Sales Method in Forecasting Funds Needed,which of the Following

question 89

Multiple Choice

When using the percent-of-sales method in forecasting funds needed,which of the following is not true?

• A) As the dividend payout ratio decreases,the required new funds also decrease.
• B) Required new funds decrease as profits margins increase.
• C) Required new funds increase as accumulated amortization increases.
• D) As the tax rate increases,the required new funds increase.

---

Definitions:

Unconditionally Promise

A commitment made without any stipulations or requirements, offering a guarantee without any terms for fulfillment.

Notice Of Dishonor

A formal notification indicating that a negotiable instrument, like a check, has been dishonored or refused for payment.

Revised Article 3

Part of the Uniform Commercial Code that governs negotiable instruments, such as checks and promissory notes, incorporating updates to reflect modern practices.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify the law across state lines.