Which of the Following Is NOT a Step in the Financial

question 70

Multiple Choice

Which of the following is NOT a step in the financial planning process?

• A)Deciding how additional required assets will be financed
• B)Estimating various cost categories as per the income statement
• C)Preparing projected funds-flow statement
• D)Ordering supplies in anticipation of future sales

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Definitions:

Leverage

Utilizing borrowed funds to increase the potential return on investment, which can also amplify the potential for loss.

Interest Payments

Money paid by a borrower to a lender for the use of borrowed funds, typically calculated as a percentage of the principal sum.

Rate of Return

The profit or deficit accrued from an investment during a certain timeframe, depicted as a percentage of the investment's original value.

Nominal Rate

The stated interest rate of a loan or financial product, not adjusted for inflation or other factors that affect the real rate of return.