When Using the Percent-Of-Sales Method in Forecasting the Funds Needed

question 66

Multiple Choice

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true?

• A) Required new funds increase as sales decrease.
• B) Required new funds decrease as profit margin increases.
• C) Required new funds increase as assets increase.
• D) As the tax rate increases, the required new funds increase.

---

Definitions:

Cellular Damage

Harm that occurs at the cellular level, potentially leading to malfunction or diseases.

Antigens

Foreign substances or toxins that induce an immune response in the body, especially the production of antibodies.

Diverticulosis

The condition of having diverticula, which are small bulging pouches, in the intestinal wall, that may or may not cause discomfort or other symptoms.

Bulging Pouches

Outwardly protruding sacs or bags, often referring to diverticula in the digestive tract that can lead to diverticulosis if inflamed.