Forecasting Cash Flows

question 23

Multiple Choice

Forecasting cash flows:

• A)Is never considered an objective of transaction processing
• B)Is only possible in computerized AISs
• C)Is considered as a risky activity with which accountants should not be associated

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Definitions:

World Bank

A bank that lends (and guarantees loans) to developing countries to assist them in increasing their capital stock and thus in achieving economic growth.

Last-Resort Lending Agency

An institution, typically a country's central bank, that offers loans to banks or other eligible institutions that are experiencing financial difficulty or are considered highly risky.

Natural Resources

Resources that are found in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by the rise in the gross domestic product (GDP).