Which of the Following Accounts May Reasonably Be Expected to Grow

question 94

Multiple Choice

Which of the following accounts may reasonably be expected to grow with sales?
I.Accounts Receivable
II.Accounts Payable
III.Property,Plant and Equipment
IV.Inventory
V.Long-Term Debt

• A) I, II, and III
• B) I, II, and V
• C) I, II and IV
• D) III and V
• E) V only

---

Definitions:

Period Cost

Expenses that are incurred by a business during a specific period but are not directly tied to the production process, such as administrative and selling expenses.

Property Taxes

Taxes paid by property owners to local or state authorities based on the assessed value of their property.

Direct Materials

Raw materials that can be directly traced to the manufacturing of a product and are an essential component of the finished product.

Direct Labor

The cost of workers who are directly involved in producing goods or providing services.