Which of the Following Assumptions Is Embodied in the AFN

question 33

Multiple Choice

Which of the following assumptions is embodied in the AFN formula forecasting method?

• A) All balance sheet accounts are tied directly to sales.
• B) Accounts payable and accruals are tied directly to sales.
• C) Common stock and long-term debt are tied directly to sales.
• D) Fixed assets, but not current assets, are tied directly to sales.

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Definitions:

Cumulative Percent

A measure that calculates the percentage total up to a specific point in a series of data, showing the accumulation of a quantity over time.

Frequency Distribution

A summary of data showing the number of observations (frequency) for each value or range of values.

B Grade

A classification often used in educational settings to denote a level of academic performance above average but below the highest level of excellence.

Frequency Distribution

A summary of data showing the number (frequency) of observations in each of various non-overlapping categories or bins.