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.

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Definitions:

Farmers'

Refers to anything pertaining to farmers or agriculture, often indicating possession, such as farmers' markets or farmers' cooperatives.

Feelings

Emotional states or reactions that are subjectively experienced by individuals, varying in intensity and type.

Secretary

An administrative aid in a company tasked with managing communications, maintaining files, and executing office tasks.

School's

School's denotes possession, referring to something that belongs to or is related to a school.