Which of the following is TRUE?
A)Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses fixed interest rates on debt.
B)Interest expenses are commonly based on a percentage of sales.
C)Depreciation costs are commonly based on a percentage of sales.
D)Forecasting sales is the last step in financial forecasting.

Question

Quizplus · Accepted Answer

Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses fixed interest rates on debt. This is because fixed interest rates remain the same over the time period for which they are fixed, making it easier to project interest expenses.

Which of the Following Is TRUE