Which Assumption Is Embodied in the AFN Formula Forecasting Method

question 4

Multiple Choice

Which assumption is embodied in the AFN formula forecasting method?

• A)All balance sheet accounts are tied directly to sales.
• B)Accounts payable and accruals are tied directly to sales.
• C)Common stock and long-term debt are tied directly to sales.
• D)Fixed assets, but not current assets, are tied directly to sales.

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Definitions:

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Orgasm

A peak moment of sexual pleasure accompanied by physiological and psychological changes.

Vasocongestion

The increase of blood flow to specific parts of the body, often resulting in swelling and redness.

Genital Tissues

Tissues that make up the reproductive organs in both males and females.