Identify which of the following statements is true.
A)The Bardahl formula is based on the firm's inventory period, receivables period, credit period, and total cash expenditures for cost of sales and operating expenses.
B)The Bardahl formula uses the concept of working capital, cash over current liabilities.
C)The Bardahl formula provides mathematical exactness when calculating reasonable working capital needs for accumulated earnings tax purposes.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The Bardahl formula is indeed based on the firm's inventory period, receivables period, credit period, and total cash expenditures for cost of sales and operating expenses.

Identify Which of the Following Statements Is True