The Forecasting Model That Assumes Previous Time Periods Have an Equal

question 6

Multiple Choice

The forecasting model that assumes previous time periods have an equal influence on future sales is

• A) exponential smoothing.
• B) historical analogy.
• C) mean absolute deviation.
• D) moving average.
• E) weighted moving average.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Cash Flows

The total amount of cash being transferred into and out of a business, after all revenues and expenses have been accounted for.

Accumulated Depreciation

The total amount of depreciation expense that has been charged against a fixed asset since it was put into use.

Investing Section

A part of the cash flow statement that shows the cash flow from all investing activities, which typically include purchases or sales of long-term assets like property, plant, and equipment.