Sales Can Often Increase Without Increasing Which One of the Following

question 121

Multiple Choice

Sales can often increase without increasing which one of the following?

• A) Accounts receivable.
• B) Cost of goods sold.
• C) Manufacturing labor.
• D) Fixed assets.
• E) Inventory.

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Definitions:

Par Value

The face value of a bond or the stated value of a stock; does not necessarily reflect market value.

Capital Lease

A lease agreement that is recorded as an asset on the lessee's balance sheet because it effectively transfers the risks and benefits of ownership from the lessor to the lessee.

Lease As Purchase

An agreement where the lessee has the option or obligation to purchase the leased asset at the end of the lease term.

Mortgage Payable

A long-term liability reflecting the amount of money borrowed to purchase property, to be repaid over a set period with interest.