Which of the following items on the income statement and balance sheet is MOST likely to vary spontaneously with sales?
A) accrued expenses
B) long term debt
C) common stock
D) amortization expense

Question

Quizplus · Accepted Answer

Accrued expenses tend to vary spontaneously with sales because they often include items like wages, utilities, and other operational expenses that naturally increase as sales volume grows. Long-term debt, common stock, and amortization expense do not typically vary directly with short-term changes in sales volume.

Which of the Following Items on the Income Statement and Balance