Which one of the following accounts is least likely to vary directly with the level of sales?
A)accounts payable
B)inventory
C)cost of goods sold
D)interest expense
E)accounts receivable

Question

Quizplus · Accepted Answer

Interest expense is typically a fixed amount that is not directly affected by the level of sales. The other options (accounts payable, inventory, cost of goods sold, and accounts receivable) are all directly related to the level of sales in some way.

Which One of the Following Accounts Is Least Likely to Vary