The "Percent of Sales Method" Is a Method of Preparing

question 101

Multiple Choice

The "percent of sales method" is a method of preparing pro forma financial statements.All of the following would be examples of how the "percent of sales method" is developed EXCEPT:

• A) Forecast expenses by applying a percent of projected sales, using last year's expenses as a percent of last year's sales.
• B) Forecast assets by applying a percent of projected sales, using current year's assets as a percent of current year's sales.
• C) Approximate liabilities by applying a percent of projected sales, using the last five-year average of liabilities as a percent of sales.
• D) Forecast retained earnings by applying a percent of projected sales, using current year's retained earnings as a percent of current year's sales.

---

Definitions:

Competencies

A set of defined skills, knowledge, abilities, and attributes that contribute to successful performance in a job or task.

Microshare

Sharing small, often personal, pieces of content or information with a specific group or individual rather than a broader audience.

Mediashare

Online platforms and services that allow users to upload, share, and view multimedia content, such as videos and photos.

Clickthrough

The action of clicking on an online advertisement or link to move from one webpage to another, often used as a measure of advertising effectiveness.