The Percent-Of-Sales Method of Financial Forecasting

question 93

Multiple Choice

The percent-of-sales method of financial forecasting

• A) is more detailed than a cash budget approach.
• B) requires more time than a cash budget approach.
• C) assumes that balance sheet accounts maintain a constant relationship to sales.
• D) provides a month-to-month breakdown of data.

---

Definitions:

Student Loans

Financial aid provided to students to help pay for education expenses, typically requiring repayment with interest after graduation or upon leaving school.

Garnishment

Garnishment is a legal process by which a creditor obtains a court order to redirect a portion of an individual's earnings or assets directly from third parties, like employers or banks, to satisfy a debt.

Post-Judgment Remedy

Legal means available to a creditor to collect what is owed following a court judgment.

Bankruptcy Code

The set of laws that govern bankruptcy proceedings, providing protection to indebted individuals and entities seeking to rearrange or eliminate their debts.