Which of the following accounts would normally increase with an increase in sales and approximately in proportion to the sales increase?
A)Ordinary shares
B)Inventory
C)Notes payable
D)Dividends

Question

Quizplus · Accepted Answer

An increase in sales would typically result in an increase in production, leading to an increase in inventory. Therefore, option B is the correct answer. Option A is unrelated, as ordinary shares do not have any direct correlation with sales. Option C is incorrect because an increase in sales would not necessarily result in an increase in notes payable. Option D is also incorrect, as dividends are not related to sales.

Which of the Following Accounts Would Normally Increase with an Increase