Financial statement forecasts rely on additivity within financial statements and articulation across financial statements.Given this information sales growth forecasts will most likely affect growth in:
A) accounts receivables.
B) accounts payable.
C) depreciation.
D) salary payable.

Question

Quizplus · Accepted Answer

Sales growth forecasts are likely to affect the level of accounts receivables, as an increase in sales will typically result in an increase in the amount of credit extended to customers, leading to an increase in accounts receivables. Accounts payable, depreciation, and salary payable are not directly affected by sales growth forecasts.

Financial Statement Forecasts Rely on Additivity Within Financial Statements and Articulation