Which of the following is NOT true?
A)The relationship between cash and sales can be determined by estimating the past relationship between sales levels and cash balances.
B)Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses variable interest rates on debt.
C)Selling expenses are commonly based on a percentage of sales.
D)A pro forma income statement may also include projected dividend payments based on the firm's established dividend policies.

Question

Quizplus · Accepted Answer

It is difficult to predict interest expenses, even if a firm uses variable interest rates on debt, due to the uncertainty of the market conditions and changing interest rates.

Which of the Following Is NOT True