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.

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Definitions:

Zygotes

The initial cell formed when a new organism is produced by the union of male and female sexual cells, containing all the genetic information necessary to form a new individual.

Genetically Identical

Organisms or cells that have the exact same genetic material, often referred to as clones.

Fertility Drugs

Medications used to enhance reproductive ability by stimulating ovulation in individuals with fertility issues.

Embryonic Period

A critical phase in early development that occurs after fertilization and lasts until the beginning of the fetal stage, characterized by rapid growth and differentiation of the embryo.