Which of the Following Statements About Financial Planning Models (FPMs)

question 92

Multiple Choice

Which of the following statements about financial planning models (FPMs) is (are) false?

• A) FPMs express a company's financial and operating relationships in mathematical terms.
• B) FPMs allow a user to explore the impact of changes in variables.
• C) FPMs are commonly known as "what-if" models.
• D) FPMs have become less popular in recent years because of computers and spreadsheets.
• E) Both FPMs are commonly known as "what-if" models and FPMs have become less popular in recent years because of computers and spreadsheets.

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Definitions:

Operating Expenses

The costs required for a business to maintain its daily operations, such as rent, salaries, and utilities.

Running The Business

The ongoing process of managing the operations, finance, and strategy of a company to sustain and grow its activities.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs, representing the actual profit during a specific period.