Which of the Following Statements Is CORRECT

question 5

Multiple Choice

Which of the following statements is CORRECT?

• A) Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings.
• B) The first,and perhaps the most critical,step in forecasting financial requirements is to forecast future sales.
• C) Forecasted financial statements,as discussed in the text,are used primarily as a part of the managerial compensation program,where management's historical performance is evaluated.
• D) The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.
• E) The AFN equation produces more accurate forecasts than the forecasted financial statement method,especially if fixed assets are lumpy and economies of scale exist.

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Definitions:

Mobile Commerce

The purchase and sale of goods and services via wireless portable devices like smartphones and tablets.

Smartphone

A mobile phone that combines a computer's capabilities with those of a phone, including internet access and a variety of applications.

B2E

Business-to-Employee, electronic transactions and services provided by a company to its employees.

Healthcare Benefits

Healthcare benefits refer to the health-related services and coverage that employers, government programs, or insurance policies provide to individuals.