Which of the Following Is Not True

Multiple Choice

Which of the following is not true?

A) The relationship between cash and sales can be determined by estimating the past relationship between sales levels and cash balances.
B) Interest expenses can be predicted with a reasonable degree of accuracy, especially when the firm uses variable interest rates on debt.
C) Selling expenses are commonly based on a percentage of sales.
D) A pro forma income statement also has to include projected dividend payments based on the firm's established dividend policies.