Financial Statement Forecasts Rely on Additivity Within Financial Statements and Articulation

question 53

Multiple Choice

Financial statement forecasts rely on additivity within financial statements and articulation across financial statements.Given this information sales growth forecasts will most likely affect growth in:

• A) accounts receivables.
• B) accounts payable.
• C) depreciation.
• D) salary payable.

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure their equality.

Accounts Balances

The total amounts present in financial accounts, reflecting credits minus debits at a specific point in time.

Trial Balance

A worksheet for accounting purposes that gathers all ledger account balances into credit and debit columns to confirm that a company's financial records are mathematically precise.

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.