Which of the Following Is NOT True

question 61

Multiple Choice

Which of the following is NOT true?

• A)The relationship between cash and sales can be determined by estimating the past relationship between sales levels and cash balances.
• B)Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses variable interest rates on debt.
• C)Selling expenses are commonly based on a percentage of sales.
• D)A pro forma income statement may also include projected dividend payments based on the firm's established dividend policies.

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