Which of the Following Is NOT One of the Steps

question 30

Multiple Choice

Which of the following is NOT one of the steps taken in the financial planning process?

• A) Assumptions are made about future levels of sales,costs,and interest rates for use in the forecast.
• B) The entire financial plan is reexamined,assumptions are reviewed,and the management team considers how additional changes in operations might improve results.
• C) Projected ratios are calculated and analyzed.
• D) Develop a set of projected financial statements.
• E) Consult with key competitors about the optimal set of prices to charge,i.e. ,the prices that will maximize profits for our firm and its competitors.

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Definitions:

Tax Equation

A mathematical formula used to calculate the amount of taxes owed based on income, deductions, and applicable tax rates.

Net Pay

The amount of money a worker takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

Social Security Tax

The amount of Social Security a worker pays depends on the Social Security percentage and the maximum taxable income for that year; the amount is split between the employee and the employer.

Medicare Tax

A federal tax deducted from employees' paychecks to fund the Medicare program, which provides healthcare to seniors.