D & R Products Forecast a First Year Asset Requirement

question 46

Multiple Choice

D & R Products forecast a first year asset requirement of R143 500; therefore, the total debt requirement is

• A)R143 500.
• B)a set percentage of sales.
• C)equal to the current ratio.
• D)dependent on the owner's equity amount.

---

Definitions:

Imported Good

A product or service that is brought into one country from another to be sold or used.

Tariff

A tax imposed by a government on goods and services imported from other countries, affecting the price and availability of those goods.

Foreign-Produced Automobiles

Vehicles manufactured outside of one's home country, highlighting the global nature of the automotive industry.

Tariff

A tax imposed by a government on goods and services imported from other countries, often used to protect domestic industries from foreign competition.