Describe Briefly Each of the Three Methods of Performing "What-If

question 8

Essay

Describe briefly each of the three methods of performing "What-If" analysis described in the text and explain the analyst's main goal in performing each.

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Definitions:

Reporting Method

Refers to the various methodologies and guidelines used for preparing and presenting financial statements.

Restricted Contribution

A donation given to a nonprofit organization with specific conditions attached as to how it can be spent.

Net Asset Balance

The total assets minus total liabilities of a company, showing the net book value of the company's equity.

Restricted Fund Method

An accounting method used by not-for-profit organizations to distinguish between resources that are restricted by donor-imposed stipulations and those that are not.