If Total Assets Increase by the Same Percentage as Sales

question 237

True/False

If total assets increase by the same percentage as sales increase the larger the increase in sales,
the more likely there will be a need for external financing.

---

Definitions:

Simulation Analysis

Involves the use of mathematical models to predict the outcome of various financial strategies under different conditions.

Cash Break-Even

Cash break-even is the point at which a business's cash receipts equal its cash expenses, indicating the minimum amount of sales needed to cover all cash outflows without considering any profit.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations over a specific period.

Sales Level

The total volume or number of units sold or services rendered over a specific period.