As a firm's sales grow,its current asset accounts tend to increase.For instance,as sales increase,the firm's purchases increase and its level of accounts payable will increase.Thus,spontaneously generated funds will arise from transaction accounts that increase as sales increase.

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This statement is true. As the firm experiences an increase in sales, its current asset accounts such as accounts receivable, inventory, and accounts payable will also increase. This increase in transaction accounts generates more spontaneously generated funds.

As a Firm's Sales Grow,its Current Asset Accounts Tend to Increase.For