Which of the following is a limitation of the percent of sales ...

[a0266361136]

Which of the following is a limitation of the percent of sales method of preparing pro forma
  financial statements?
 
  A) Inventory levels are seldom affected by changes in sales volume.
  B) A firm's investment in accounts receivable is seldom related to sales volume.
  C) Not all assets and liabilities increase or decrease as a constant percent of sales.
  D) The dividend payout ratio may change from one year to the next.

Question 2

An extremely liquid asset is one that can be sold for cash quickly without a reduction in price
  below its current market value.
 
  Indicate whether the statement is true or false

[mmj22343]

Answer to Question 1

C

Answer to Question 2

TRUE

[a0266361136]

YES! Correct, THANKS for helping me on my review

[bimper21]

Thanks for the timely response, appreciate it