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
A)I, II and IV
B)I, II and V
C)III and V
D)I, II and III

Question

Quizplus · Accepted Answer

Accounts Receivable and Inventory are directly related to sales and are expected to grow as sales increase. Accounts Payable can also grow with increased purchases, which may be necessary to keep up with the growth in sales. Property, Plant and Equipment and Long-Term Debt are not necessarily tied to sales growth and may be more influenced by other factors such as financing decisions and capital expenditures.

Which of the Following Accounts May Reasonably Be Expected to Grow