A Procrustes Approach to Financial Planning Is Based On

question 88

Multiple Choice

A Procrustes approach to financial planning is based on:

• A) a policy of producing a financial plan once every five years.
• B) developing a plan around the goals of senior managers.
• C) a proactive approach to the economic outlook.
• D) a flexible capital budget.
• E) a flexible capital structure.

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Definitions:

Present Obligation

A duty or responsibility that exists at the reporting date, typically requiring an outflow of resources.

Contingent Liability

A potential financial obligation that may occur in the future depending on the outcome of a specific event, not confirmed to exist or be measurable until one or more conditions are fulfilled.

Liability

A financial obligation or debt owed by an individual or company.

Accrual

The accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur.