Which of the Following Is TRUE

question 35

Multiple Choice

Which of the following is TRUE?

• A)Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses variable interest rates on debt.
• B)Interest expenses are commonly based on a percentage of sales.
• C)Depreciation costs are commonly based on a percentage of sales.
• D)Forecasting sales is the most important step in financial forecasting.

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws.

Certified Public Accountant

A professional designation given to accountants who pass a licensing examination and meet other statutory requirements.

Oversight Board

A governing body or committee that provides guidance, regulation, or supervision over a particular area or organization.

Principle Of Rights

The principle that judges the morality of a decision on the basis of how it affects the rights of all those involved.