Forecasting Sales Has Two Components

question 43

Multiple Choice

Forecasting sales has two components,

• A) guest counts or covers, and average check amount
• B) total sales and average entrée price
• C) average check amount and total sales
• D) food budget and guest counts or covers

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Short-term Obligations

Financial liabilities that are due for payment within one year.

Normal Balance

The side of an account (debit or credit) that is expected to have a higher balance based on the accounting equation.

Asset Account

An account on a balance sheet representing tangible or intangible items of value owned by a company.