When Forecasting Statements, Assets Always Increase Proportionately to Sales Regardless

question 96

True/False

When forecasting statements, assets always increase proportionately to sales regardless of capacity.

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Definitions:

Ledger

A book or database in which financial transactions are recorded systematically.

Source Documents

Original records that provide evidence that a transaction has occurred, such as receipts, invoices, checks, or bank statements.

Unearned Revenue

Money received by a business for goods or services yet to be provided; it is recorded as a liability until the goods or services are delivered.

Balance Sheet

A financial document showing what a company owns, owes, and the equity of its shareholders at a fixed point in time.