Author Question: A weakness of the percent-of-sales method of preparing a pro forma income statement is ________. ... (Read 29 times)

jilianpiloj

  • Hero Member
  • *****
  • Posts: 521
A weakness of the percent-of-sales method of preparing a pro forma income statement is ________.
 
  A) that it forecasts income and then expresses the various income statement items as percentages of projected income
  B) the assumption that the firm faces linear total revenue and total operating cost functions
  C) the assumption that the firm's past financial condition is an accurate predictor of its future
  D) the difficulty faced in calculation and preparation of such statements

Question 2

Preferred stocks typically mature at a specific date set by the corporation.
 
  Indicate whether the statement is true or false



ansleighelindsey

  • Sr. Member
  • ****
  • Posts: 364
Answer to Question 1

C

Answer to Question 2

FALSE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Vaccines prevent between 2.5 and 4 million deaths every year.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

For a complete list of videos, visit our video library