13) The percent-of-sales method of financial forecasting
A. is more detailed than a cash budget approach.
B. provides a month-to-month breakdown of data.
C. assumes that balance sheet
accounts maintain a constant relationship to sales.
D. requires more time than a cash budget approach.
14) In financial statements, the number of units shown in cost of goods sold as compared to the number of the units actually produced
A. is higher.
B. can be either higher or lower.
C. is the same.
D. is lower.
15) In general, the larger the portion of a firm's sales that are on credit, the
A. lower will be the firm's need to borrow.
B. more the firm can buy raw materials on credit.
C. more rapidly credit sales will be paid off.
D. higher will be the firm's need to borrow.