Which of the following tends to vary spontaneously with changes in the level of sales?
A) long‑term debt
B) plant
C) accounts payable
D) paid‑in capital

Question

Which of the following tends to vary spontaneously with changes in the level of sales?​
A) ​long‑term debt
B) ​plant
C) ​accounts payable
D) paid‑in capital

Quizplus · Accepted Answer

Accounts payable tends to vary spontaneously with changes in the level of sales since an increase in sales often means an increase in purchases and subsequently, an increase in accounts payable. Long-term debt, plant, and paid-in capital are not directly affected by changes in sales.

Which of the Following Tends to Vary Spontaneously with Changes