The percent of sales method does not accurately estimate the balances for lumpy assets. Which of
the following statements best describes the possible errors?
A) The percent of sales method consistently overestimates the forecasted balances of lumpy
assets.
B) If fixed assets are utilized at full capacity currently, the percent of sales method will
underestimate the forecasted fixed asset balance.
C) If excess capacity exists, the percent of sales method will overestimate asset requirements.
D) The percent of sales method consistently underestimates the forecasted balances of lumpy
assets.
C
You might also like to view...
Cheryl Liao is an accountant at Folding Squid Technologies. While making an adjusting entry to the general ledger, she received the following error message when she tried to save her entry, "The data you have entered does not include a source reference code. Please enter this data before saving." This message was the result of a
A) validity check. B) field check. C) zero-balance check. D) completeness test.
_____________ Financing: can write off losses, depreciation, even on non recourse financing, as long as the lender is the gov't. or a bank
Fill in the blank(s) with the appropriate word(s).