Which of the following statements about financial statement forecasting methods is most correct? For-profit and not-for-profit...
Which of the following statements about financial statement forecasting methods is most correct?
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For-profit and not-for-profit businesses use totally different approaches to financial forecasting. |
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In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the cash account. |
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In the constant growth (percentage of sales) method, after the first pass the balance sheet is balanced by adjusting the equity account. |
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In the constant growth (percentage of sales) method, the balance sheet is automatically balanced after one pass (one iteration). |
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None of the statements above is correct. |
Homework Answers
|
For-profit and not-for-profit businesses use totally different approaches to financial forecasting. |
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Which of the following statements about financial statement
forecasting methods is most correct?
For-profit and not-for-profit...
Which of the following statements about the financial planning process is correct? The additional funds needed...
Which of the following statements about the financial planning process is correct? The additional funds needed (AFN) is estimated by summing the expected changes in assets and liabilities that fluctuate with sales and then subtracting the expected operating income. The projected balance sheet method requires only the balance sheet to determine a firm's expected financial needs. The decision as to how a firm should raise additional funds needed (AFN) to meet its financial goals depends on the ability of the...
13. Which of the following statements is correct? a. Any forecast of financial requirements involves determining...
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13. Which of the following statements is correct? a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in asset...
13. Which of the following statements is correct? a. Any forecast of financial requirements involves determining how much money the firm will need and is obtained by adding together increases in assets and spontaneous liabilities and subtracting operating income. b. The projected balance sheet method of forecasting financial needs requires only a forecast of the firm's balance sheet. Although a forecasted income statement helps clarify the financing needs, it is not essential to the balance sheet method. c. Because dividends...
Which of the following statements is CORRECT? a. The first, and perhaps the most critical, step...
Which of the following statements is CORRECT? a. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales. b. The capital intensity ratio gives us an idea of the physical condition of the firm’s fixed assets. c. Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management’s historical performance is evaluated. d. Perhaps the most important step when developing forecasted financial statements...
Which of the following statements about the balance sheet is most correct? a. The balance sheet...
Which of the following statements about the balance sheet is most correct? a. The balance sheet provides information about the financial position of an organization as of a moment in time. b. The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. c. The balance sheet is affected by changes in the net income of the organization. d. Statements a and c are both correct. e. Statements a, b, and c are all...
38. Which is the FIRST financial statement that wi process? ll be completed in the forecasting...
38. Which is the FIRST financial statement that wi process? ll be completed in the forecasting a) Income Statement b) Balance Sheet c) Statement of Cash Flows d) Statement of Changes in Stockholders Equity 39. Which of the following is the first item to be forecast when proper methods are use a) Stockholder's Equity b) Comprehensive Income c) Total Revenues d) Total Assets e) Cash Flow From Operating Activities
Which of the following statements about the balance sheet is most correct? O The balance sheet...
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
22. Which of the following statements about forecasting is NOT true? (4 points) a. The need...
22. Which of the following statements about forecasting is NOT true? (4 points) a. The need for medium-term forecasts arises from planning problems related to issues of capacity. b. Managers use judgment methods for short-term forecasts when historical data is not available. c. Managers are typically interested in forecasts of unit demand for individual products for the short term. d. The Delphi method is a structured, consensus building forecasting method that uses a group of experts to make a forecast....
Which of the following statements about a periodic inventory system is not correct? Select one: A....
Which of the following statements about a periodic inventory system is not correct? Select one: A. The system does not include an up-to-date inventory ledger. B. These systems are used primarily by small businesses with manual accounting systems. C. The balance in the Inventory account remains unchanged until the end of the period. D. The Cost of Goods Sold account is updated as sales transactions occur.
Forecasted Financial Statements The AFN equation provides useful insights into the forecasting process, but this equation...
Forecasted Financial Statements The AFN equation provides useful insights into the forecasting process, but this equation assumes that all of the firm's key ratios remain constant, which is not likely to hold true. Consequently, it is useful to forecast the firm's financial statements. The firm begins with forecasting its -Select which then eeds into the firm's balance sheet. Management looks at operating a s on their relationship with industry and benchmark averages. The orecasted income statement begins it the prior...
38. Which is the FIRST financial statement that wi process? ll be completed in the forecasting a) Income Statement b) Balance Sheet c) Statement of Cash Flows d) Statement of Changes in Stockholders Equity 39. Which of the following is the first item to be forecast when proper methods are use a) Stockholder's Equity b) Comprehensive Income c) Total Revenues d) Total Assets e) Cash Flow From Operating Activities
Which of the following statements about the balance sheet is most correct? O The balance sheet provides information about the financial position of an organization as of a moment in time. O The balance sheet provides detailed information about the assets, liabilities, equity, revenues, and expenses of an organization. O The balance sheet is affected by changes in the net income of the organization. O Statements a. and c. are both correct. O Statements a, b, and c. are all...
22. Which of the following statements about forecasting is NOT true? (4 points) a. The need for medium-term forecasts arises from planning problems related to issues of capacity. b. Managers use judgment methods for short-term forecasts when historical data is not available. c. Managers are typically interested in forecasts of unit demand for individual products for the short term. d. The Delphi method is a structured, consensus building forecasting method that uses a group of experts to make a forecast....
Forecasted Financial Statements The AFN equation provides useful insights into the forecasting process, but this equation assumes that all of the firm's key ratios remain constant, which is not likely to hold true. Consequently, it is useful to forecast the firm's financial statements. The firm begins with forecasting its -Select which then eeds into the firm's balance sheet. Management looks at operating a s on their relationship with industry and benchmark averages. The orecasted income statement begins it the prior...
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