The Objective of Forecasting Is to Develop

question 58

Multiple Choice

The objective of forecasting is to develop:

• A) stand-alone financial statements for future analysis.
• B) a set of realistic expectations for future value-relevant payoffs.
• C) a balance sheet and income statement that articulate.
• D) financial statements for comparison to industry averages.

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Definitions:

Worksheet Income Statement

is a financial statement that preliminarily combines income and expenses data in worksheet form to calculate net income or loss.

Normal Balance

The part of an account (either debit or credit) that is used to log increments in the account's value.

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, including balance sheets, income statements, and statements of cash flows.

Permanent/Temporary

Refers to accounts or methods in accounting that either endure indefinitely (permanent) or have an expiration or closing time (temporary).