Which of the Following Statements Is CORRECT

question 44

Multiple Choice

Which of the following statements is CORRECT?

• A) The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales.
• B) 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.
• C) The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.
• D) The AFN equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists.
• E) Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings.

Distinguish between legal offers, invitations to treat, and unilateral and bilateral contracts.

Identify the effects of counter-offers, inquiries, revocations, and acceptances on the validity of an offer.

Analyze the importance of capacity, consideration, and intention in forming a contract.

Comprehend the significance and application of the postbox rule in contract law.

---

Definitions:

Datasheet View

A means of viewing data in a database where information is displayed in rows and columns, resembling a spreadsheet.

Add Field

The action of inserting a new data field into a database, form, or application to capture more information.

New Field

An additional column or entry space defined in a database or spreadsheet for storing specific pieces of data.

Insert Field

A command used in software applications to embed dynamically-updating or user-specified information into a document.