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Questions and Answers
What are the objectives of financial forecasting?
What are the objectives of financial forecasting?
- To ignore future opportunities
- To decrease cost of responding to emergencies by anticipating future occurrences (correct)
- To increase cost of responding to emergencies
- To respond only to past opportunities
What are the three planning documents required in financial planning?
What are the three planning documents required in financial planning?
- Cash Flow Statement, Balance Sheet, Income Statement
- Budgeted Income Statement, Budgeted Balance Sheet, Cash Budget
- Cash Budget, Pro Forma Balance Sheet, Pro Forma Income Statement (correct)
- Expense Budget, Profit & Loss Statement, Cash Flow Statement
What does 'pro forma' refer to in financial planning documents?
What does 'pro forma' refer to in financial planning documents?
- Forecasting (correct)
- Budgeting for the present
- Analyzing current trends
- Reviewing past data
Which method is commonly used for preparing pro forma statements?
Which method is commonly used for preparing pro forma statements?
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What is the difference between Cash Budget and Percentage of Sales method in forecasting?
What is the difference between Cash Budget and Percentage of Sales method in forecasting?
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