Which of the following accounts may reasonably be expected to grow with sales?
I.Accounts Receivable
II.Accounts Payable
III.Property,Plant and Equipment
IV.Inventory
V.Long-Term Debt

Question

Which of the following accounts may reasonably be expected to grow with sales? 
I.Accounts Receivable
II.Accounts Payable
III.Property,Plant and Equipment
IV.Inventory
V.Long-Term Debt

Quizplus · Accepted Answer

Accounts Receivable and Inventory are both assets that are likely to increase with sales, while Accounts Payable is a liability that will also increase as a result of increased purchases. Property, Plant, and Equipment is not directly tied to sales, and Long-Term Debt is not likely to change as a result of short-term changes in sales. Therefore, options C is the most appropriate choice.

Which of the Following Accounts May Reasonably Be Expected to Grow