Which One of the Following Is Correct in Relation to Pro

question 9

Multiple Choice

Which one of the following is correct in relation to pro forma statements?

• A)Fixed assets must increase if sales are projected to increase.
• B)Net working capital is affected only when a firm's sales are expected to exceed the firm's current production capacity.
• C)The addition to retained earnings is equal to net income plus dividends paid.
• D)Long-term debt varies directly with sales when a firm is currently operating at maximum capacity.
• E)Inventory changes are directly proportional to sales changes.

---

Definitions:

Mammals

Warm-blooded vertebrates characterized by the presence of mammary glands which females use to nourish their young.

Types of Teeth

Types of teeth refer to the classification of teeth in mammals, including incisors, canines, premolars, and molars, each serving different functions in the process of eating.

Vertebrates

Animals that have a backbone or spinal column, which includes mammals, birds, reptiles, amphibians, and fish.

Amphibians

A group of cold-blooded vertebrates known for living both in water and on land at different stages of their life - including frogs, salamanders, and newts.