The insurance policy represents the cost element of a contract

Condition subsequent exists when the parties to a contract must render performance simultaneously

Indicate whether the statement is true or false

The "percent of sales method" is a method of preparing pro forma financial statements. All of the

following would be examples of how the "percent of sales method" is developed EXCEPT: A) Forecast assets by applying a percent of projected sales, using current year's assets as a percent of current year's sales. B) Forecast retained earnings by applying a percent of projected sales, using current year's retained earnings as a percent of current year's sales. C) Approximate liabilities by applying a percent of projected sales, using the last five-year average of liabilities as a percent of sales. D) Forecast expenses by applying a percent of projected sales, using last year's expenses as a percent of last year's sales.