A Firm's Sales Grow, Its Current Assets Also Tend to Increase

question 21

True/False

a firm's sales grow, its current assets also tend to increase For instance, as sales increase, the firm's inventories generally increase, and purchases of inventories result in more accounts payable Thus, spontaneous liabilities that reduce AFN arise from transactions brought on by sales increases.

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Definitions:

Encore brides

Encore brides are women who are getting married for the second time or more, often implying a subsequent chance at happiness in marriage.

Custodial fathers

Fathers who have been granted primary legal and physical custody of their children following a separation or divorce.

Divorced mothers

Women who have legally ended their marriages and are responsible for caring for their children as single parents.

Nontraditional family

A family structure that differs from societal norms, such as single-parent families or families with same-sex parents.