Sales growth _________________.A) Will typically lead to growth in current assets.B) Will automatically lead to increases in long-term debt.C) Is the least important item to forecast in the financial planning process.D) Will require additions to net fixed assets for firms operating at less than full capacity.E) Of less than 10% will make EFN negative, creating a surplus.

Question

Sales growth _________________.A)  Will typically lead to growth in current assets.B)  Will automatically lead to increases in long-term debt.C)  Is the least important item to forecast in the financial planning process.D)  Will require additions to net fixed assets for firms operating at less than full capacity.E)  Of less than 10% will make EFN negative, creating a surplus.

Valeria Castillo · Accepted Answer

Final Answer : A, Explanation :  Sales growth typically leads to growth in current assets as increased sales often require more inventory and accounts receivable.

Definitions

Learning Objectives

Learning Objectives

Related questions