In the percent-of-sales forecasting method, which of the following is (are) assumed to increase proportionately with sales?
A)cash
B)accounts receivable
C)accounts payable
D)all of the answers are correct

Question

Quizplus · Accepted Answer

The percent-of-sales method assumes that all items on the income statement (including cash) and the balance sheet (including accounts receivable and accounts payable) will increase or decrease proportionately with sales.

In the Percent-Of-Sales Forecasting Method, Which of the Following Is