DAS,IncIs Preparing Its Financial Forecast for Next Year and Its

question 75

Multiple Choice

DAS,Inc.is preparing its financial forecast for next year and its discretionary financing needed is negative.This means that

• A) sales growth must be negative.
• B) the predicted change in total assets must be negative.
• C) the predicted change in spontaneous liabilities and retained earnings must be greater than the predicted change in total assets.
• D) the dividend payout ratio must be greater than the predicted growth rate in sales.

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Definitions:

Principal

In financial terms, it refers to the original sum of money borrowed in a loan, or the initial amount of money invested, excluding any interest or profits. In legal terms, it can also refer to a person who grants authority to an agent to act on their behalf.

Salesperson

An individual who sells goods or services directly to customers for a company.

Duress

Compulsion, force, or pressure to perform an act against one's will.

Wrongful Act

Any action that infringes on the rights of another or is illegal, leading to potential legal liability.