Which of the Following Balance Sheet Accounts Is Most Likely

question 73

Multiple Choice

Which of the following balance sheet accounts is most likely to vary directly with sales?

• A)depreciation
• B)accounts receivable
• C)long-term debt
• D)common equity

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Definitions:

Insurer

An entity that provides insurance, offering protection against financial loss in exchange for premiums.

Insured

The insured refers to the individual or entity covered under an insurance policy, receiving protection against specified loss or damage.

Insurance Policy

A contract between an individual or entity and an insurance company to provide financial protection or reimbursement against losses.

Cancel Policy

A set of rules or conditions under which an insurance policy or an agreement can be terminated before its normal expiration date by either party.