Assume a firm is operating at full capacity.Which one of these accounts is least apt to vary directly with sales?
A)Inventory
B)Cash
C)Long-term debt
D)Accounts payable
E)Fixed assets

Question

Quizplus · Accepted Answer

Long-term debt is usually not directly affected by sales as it is a fixed obligation. The amount owed on long-term debt will remain the same regardless of fluctuations in sales.

Assume a Firm Is Operating at Full Capacity