Which One of the Following Is Correct in Relation to Pro

question 9

Multiple Choice

Which one of the following is correct in relation to pro forma statements?

• A)Fixed assets must increase if sales are projected to increase.
• B)Net working capital is affected only when a firm's sales are expected to exceed the firm's current production capacity.
• C)The addition to retained earnings is equal to net income plus dividends paid.
• D)Long-term debt varies directly with sales when a firm is currently operating at maximum capacity.
• E)Inventory changes are directly proportional to sales changes.

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Definitions:

Firmware

Pre-installed, low-level software in electronic devices that controls the device's specific hardware functions.

Window

A graphical interface element that displays the contents of an application or dialog in a separate frame on the screen.

Access Point

A device that allows wireless devices to connect to a wired network using Wi-Fi or related standards.

Range Extender

A device that expands the coverage area of a wireless network by receiving the existing signal and re-broadcasting it.