Question

The percentage of sales approach separates accounts on the pro forma income statement and balance sheet into those that change directly with ____ and those that do not.

Answer 1

Answer:

Sales

Explanation:

Sales is defined as the activities which are related to the selling or the number of the services or goods that are sold in the given period of time or year.

The seller who finished or concluded the sales in relation to the acquisition or appropriation or in a direct interaction at the time of sale with the buyer.

Therefore, the percentage of the sales method, separates the accounts on the balance sheet and pro forma income statement into those which change directly with sales.