Forecasts

question 3

Multiple Choice

Forecasts

• A) become more accurate with longer time horizons.
• B) are rarely perfect.
• C) are more accurate for individual items than for groups of items.
• D) are more accurate for new products than for existing products.
• E) are impossible to make.

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Definitions:

Debit Column

is a section in accounting records where increases in asset and expense accounts or decreases in liability, equity, and revenue accounts are entered.

Credit Column

The column in an accounting ledger where credit transactions are recorded, reflecting increases in liabilities, equity, or revenue, or decreases in assets or expenses.

Service Revenue

The income a company earns from providing services as opposed to selling physical goods, and it is recorded as it is earned in the accounting period.

Balance Sheet Columns

Sections in a balance sheet that categorize assets, liabilities, and shareholder's equity at a specific point in time.