In a period of rising sales utilizing past cost and expense ratios (percent-of-sales method), when preparing pro forma financial statements and planning financing, will tend to ________

A) understate retained earnings and understate the additional financing needed
B) overstate retained earnings and overstate the additional financing needed
C) understate retained earnings and overstate the financing needed
D) overstate retained earnings and understate the financing needed

C

Business

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The _________ level of planning would be determining specific objectives which it hopes to achieve for each of its identified business initiatives and/or business units.

A. Strategic B. Tactical C. Operating D. Corporate E. Business

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According to the text, the key to an effective presentation is preparation

Indicate whether the statement is true or false

Business