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:

Net Present Value

A calculation that determines the value of a series of future cash flows in today's dollars, used to assess the profitability or viability of an investment or project.

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but instead reinvested in the business.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, often represented by the yield on government securities.

Financing

The act of providing funds for business activities, making purchases, or investing.