Using the Latest Observation in a Sequence of Data to Forecast

question 16

Multiple Choice

Using the latest observation in a sequence of data to forecast the next period is

• A)a moving average forecast.
• B)a naive forecast.
• C)an exponentially smoothed forecast.
• D)an associative forecast.
• E)a regression analysis.

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Definitions:

Unearned Revenue

This is income received by a business for goods or services yet to be delivered or performed. It's considered a liability until the product or service is delivered.

Cash Payment

A transaction in which a payment is made using physical currency or through a digital cash transfer rather than credit.

Deferred Tax Asset

An asset on a company's balance sheet that may be used to reduce future tax liability; it arises when a company has overpaid taxes or paid them in advance.

Wages Expense

An accounting term that refers to the total cost incurred by a company to pay its employees, recognized in the period employees perform the work.