The Percentage of Sales Method Is Based on Which of the Following

question 12

Multiple Choice

The percentage of sales method is based on which of the following assumptions?

• A) All balance sheet accounts are tied directly to sales.
• B) Most balance sheet accounts are tied directly to sales.
• C) The current level of total assets is optimal for the current sales level.
• D) Answers a and c above.
• E) Answers b and c above.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often involving the exchange of goods, services, technology, and cultural ideas.

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