Using the Percentage of Sales Method of Forecasting

question 61

Multiple Choice

Using the percentage of sales method of forecasting,

• A) all asset and liability accounts increase or decrease proportionally with sales.
• B) only asset accounts increase or decrease proportionally with sales.
• C) accounts payable and accrued expenses are the only liabilities that increase or decrease proportionally with sales.
• D) all balance sheet accounts increase or decrease proportionally with sales.

---

Definitions:

International Currency Markets

Markets where currencies are traded internationally, crucial for determining foreign exchange rates.

Dollar

The currency unit of the United States, used as a standard monetary unit in international trade.

Depreciation Of The Dollar

A decrease in the value of the U.S. dollar relative to other currencies in the global market.

American Imports

American Imports are goods and services bought by residents of the United States from other countries.