In using more sophisticated planning models, which one of the following statements is NOT true?

Question

Quizplus · Accepted Answer

All of the statements are true in using more sophisticated planning models. Current liabilities are likely to vary directly with sales as they are typically used to finance the day-to-day operations of the business. Managerial decisions can directly impact long-term liabilities and equity accounts, such as issuing new bonds or stock. Retained earnings will vary as sales changes, but the exact amount is also impacted by the company's dividend policy, as the amount of earnings kept in the business impacts the amount available to pay out as dividends.

In Using More Sophisticated Planning Models, Which One of the Following