Using the Percent of Sales Method and Assuming That No

question 37

Multiple Choice

Using the percent of sales method and assuming that no excess capacity exists,a 20% increase in sales will result in

• A) a 20% increase in total assets.
• B) a 20% increase in total liabilities.
• C) a 20% increase in retained earnings.
• D) a 20% increase in the company's profit margin.

Understand the principles of career counseling and the importance of person-environment fit.

Appreciate the role of intrinsic and extrinsic motivation in enhancing work performance.

Identify strategies for finding work that aligns with personal interests and strengths.

Recognize the impact of preconceptions and biases in the hiring process and employee evaluations.

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Definitions:

Inventory Account

An account used to track the cost of goods available for sale or use, including items purchased for resale, raw materials, work-in-process, and finished goods.

Debit Balance

An accounting entry that occurs when the total of debits in an account exceeds the total of credits, which is common in asset and expense accounts.

Gross Profit

The financial measure obtained by subtracting the cost of goods sold from revenue.

Repossessed Inventory

Goods taken back by a seller or lender from the buyer, typically due to failure to make required payments.