In the Percent-Of-Sales Forecasting Method, Which of the Following Is

question 43

Multiple Choice

In the percent-of-sales forecasting method, which of the following is (are) assumed to increase proportionately with sales?

• A)cash
• B)accounts receivable
• C)accounts payable
• D)all of the answers are correct

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Definitions:

Exchange Gain/Loss

The gain or loss resulting from the fluctuation in exchange rates affecting the value of foreign currency transactions.

Functional Currency

The primary currency used by a business or organization for accounting purposes, reflecting the economic context of its operations.

Functional Currency

The primary currency used by a business or entity in its financial operations and reporting.

Current Monetary Assets

Assets held by a company that are in the form of cash or can be easily converted into cash within a short period, typically one year.