Which of the below assumptions is necessary when using the constant growth (percentage of sales) method of

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Which of the below assumptions is necessary when using the constant growth (percentage of sales) method of forecasting financial statements?

A. Most income statement items and balance sheet accounts are tied directly to revenues.

B. The current levels of income statement items and balance sheet accounts are optimal for the current volume of services provided.

C. All reimbursements are by the fee-for-service method.

D. Both a. and b. are correct.

E. Assumptions a., b., and c. are all correct.

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation

ISBN: 978-0324302950

6th edition

Authors: Clyde P. Stickney

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Posted Date: Feb 13, 2024 12:37 AM

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Which of the below assumptions is necessary when using the constant growth (percentage of sales) method of

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Financial Reporting Financial Statement Analysis and Valuation

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