In Creating Pro Forma Statements, If We Assume That Costs

question 185

Multiple Choice

In creating pro forma statements, if we assume that costs, assets, and short-term debt vary directly with changes in sales, that the payout ratio is fixed, and that the change in long-term debt only
Results from payments made as required on the debt contracts, then the "plug" required for the
Balance sheet to balance will probably be:

• A) Dividends.
• B) Total debt.
• C) Long-term debt.
• D) New equity sales.
• E) Retained earnings.

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Definitions:

Conditioned Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; also known as a secondary reinforcer.

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and to use the toilet for elimination.

Discriminative Stimulus

A stimulus in operant conditioning that indicates the probability of consequence for a behavior; it signals whether reinforcement or punishment is likely to follow a specific response.

Reinforced

Strengthened or emphasized, often in the context of behavior strengthened by a reward in psychology.