When Using the Percent-Of-Sales Method in Forecasting the Funds Needed

question 66

Multiple Choice

When using the percent-of-sales method in forecasting the funds needed, which of the following is not true?

• A) Required new funds increase as sales decrease.
• B) Required new funds decrease as profit margin increases.
• C) Required new funds increase as assets increase.
• D) As the tax rate increases, the required new funds increase.

Recognize the changes in real federal spending per person over time.

Analyze changes in the composition of federal spending over the last few decades.

Evaluate the effects of changes in personal income tax rates on revenue collection from different income groups.

Interpret the relationship between government spending and its impact on the economy.

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