Which of the Following Is an Indirect Planning Assumption

question 28

Multiple Choice

Which of the following is an indirect planning assumption?

• A)A 3% reduction in product price
• B)A decrease in interest rates from 8% to 7%
• C)An improvement in the average collection period from 45 to 40 days
• D)None of the above are indirect assumptions.

Comprehend the process and purpose of totaling sales journal's columns at the end of the month.

Grasp the necessity of ensuring total debits and credits are equal in a columnar journal before posting.

Identify the appropriate journal for recording various types of transactions.

Define and understand the concept of a business segment.

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Definitions:

Bond Refunding

The process of refinancing an existing bond issue by raising new debt at lower interest rates to pay off the old bonds before they mature.

Yield Curve

A graph that plots the interest rates of bonds having equal credit quality but differing maturity dates, typically showing the relationship between short-term and long-term bond yields.

Long-Term Rates

Interest rates applied to loans or debt instruments, such as bonds, with a maturity of over a year.

Short-Form Prospectus Distribution

A regulatory process that allows for the quicker and less burdensome distribution of securities, relying on a simplified prospectus for investors.