When Actual Sales Are Greater Than Forecasted Sales

question 64

Multiple Choice

When actual sales are greater than forecasted sales:

• A) inventory will increase.
• B) production schedules might have to be revised downward.
• C) accounts receivable will decrease.
• D) inventory will decrease and accounts receivable will increase.

---

Definitions:

End-of-period Spreadsheets

Financial documents prepared at the end of an accounting period, summarizing the financial status and performance of a business.

Net Income

The company's net profit, calculated by subtracting all costs and taxes from its overall revenue.

Net Loss

The amount by which total expenses exceed total revenues for a specific period, indicating a reduction in equity.

Accruals

Accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash transaction takes place.