It would be reasonable for company treasurer conducting financial forecasting to assume that spontaneous liabilities would increase at the rate of sales.

Question

Quizplus · Accepted Answer

Spontaneous liabilities, such as accounts payable or accrued wages, typically increase in direct proportion to sales because they are directly related to the operational activities of a company. As sales grow, the transactions that generate these liabilities also tend to increase.

It Would Be Reasonable for Company Treasurer Conducting Financial Forecasting