Which Assumption Is Embodied in the AFN Formula Forecasting Method

question 4

Multiple Choice

Which assumption is embodied in the AFN formula forecasting method?

• A)All balance sheet accounts are tied directly to sales.
• B)Accounts payable and accruals are tied directly to sales.
• C)Common stock and long-term debt are tied directly to sales.
• D)Fixed assets, but not current assets, are tied directly to sales.