The Percentage of Sales Method

question 66

Multiple Choice

The percentage of sales method:

• A) requires that all accounts grow at the same rate.
• B) separates accounts that vary with sales and those that do not vary with sales.
• C) allows the analyst to calculate how much financing the firm will need to support the predicted sales level.
• D) Both requires that all accounts grow at the same rate; and separates accounts that vary with sales and those that do not vary with sales.
• E) Both separates accounts that vary with sales and those that do not vary with sales; and allows the analyst to calculate how much financing the firm will need to support the predicted sales level.

---

Definitions:

Observable

Capable of being seen or noticed, often used to describe phenomena that can be perceived directly or recorded.

Somatic Cells

All the cells in the body except for the germ cells (the ova and sperm).

Genes

The basic physical and functional units of heredity made up of DNA.

Zygotes

The initial cell formed when a new organism is produced by means of sexual reproduction, resulting from the union of an ovum and a sperm cell.