Assumptions is embodied in the percent of sales method

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Reference no: EM131597244

Which of the following assumptions is embodied in the percent of sales method?

a. All balance sheet accounts are tied directly to sales.

b. Accounts payable and accruals are tied directly to sales.

c. Common stock and long-term debt are tied directly to sales.

d. Fixed assets, but not current assets, are tied directly to sales.

e. Last year’s total assets were not optimal for last year’s sales.

Reference no: EM131597244

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