This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements is correct? (Read 45 times)

Caileynorton

  • Full Member
  • ***
  • Posts: 132
Which of the following statements is correct?

When we use the AFN formula, we assume that the ratios of assets and liabilities to sales (A*/S0 and L*/S0) vary from year to year in a stable, predictable manner.


Firms whose fixed assets are "lumpy" frequently have excess capacity, and this should be accounted for in the financial forecasting process.


For a firm that uses lumpy assets, it is impossible to have small increases in sales without expanding fixed assets.


When fixed assets are added in large, discrete units as a company grows, the assumption of constant ratios is more appropriate than if assets are relatively small and can be added in small increments as sales grow.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Caileynorton on Aug 7, 2023

gcurrens

  • Full Member
  • ***
  • Posts: 170
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




Caileynorton

  • Member
  • Posts: 132
Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


FergA

  • Member
  • Posts: 352
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

For a complete list of videos, visit our video library