Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
Question
Book Icon
Chapter 12, Problem 2Q
Summary Introduction

To choose: The items which rises spontaneously with rises in sales.

Expert Solution & Answer
Check Mark

Explanation of Solution

Accrued wages, accounts payable and accrued taxes rise spontaneously. Retained earnings may perhaps rises based on the dividend payout policy and profitability.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Some liability and net worth items increase spontaneously with increases insales. Put a check (✓) by the following listed items that typically increasespontaneously:Notes payable to banks______________________
An investor wants to know if a company is manipulating its earnings with the help of allowances for doubtful accounts? What is the best way to do this? A.Look at the level of doubtful accounts as a percentage of sales and percentage of receivables for past years. b.Compare the level of doubtful accounts as a percentage of sales and percentage of receivables with peers in the same industry. c.Analyze the earnings trends without allowances for doubtful allowances and identify earnings pressures if any. d.All of these.
Which one of the following is an advantage of LIFO? a. In periods of rising prices, less income taxes are paid b. In periods of rising prices, more holding gains are reported in net income c. Record keeping and financial statement preparation are easier d. Conservative income statement and balance sheet disclousures result from falling prices
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College