If a Firm's Sales Increased by 12%,and It Has No

question 100

Multiple Choice

If a firm's sales increased by 12%,and it has no spare capacity,it must increase fixed assets by:

• A) 0%.
• B) 6%.
• C) 9%.
• D) 12%.

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Definitions:

Total Liabilities

The combined amount of a company's short-term and long-term financial obligations.

Statement Of Owner's Equity

A financial document that shows changes in the owner’s equity of a company during a specific period, including contributions, withdrawals, and the income or loss.

Change In Revenue

The difference in a company's sales from one period to the next, reflecting increases or decreases in income from its operations.

Statement Of Owner's Equity

A financial document showing the changes in the owner's equity of a company over a specific period, including investments, withdrawals, and profits or losses.