A Major Difference Between Financial Planning and Forecasting Is That

question 4

Multiple Choice

A major difference between financial planning and forecasting is that financial planning:

• A)Is forward-looking
• B)Relies on the viewpoints of management
• C)Determines the rate of profitability
• D)Is equally concerned with less-likely outcomes

---

Definitions:

Depreciation Expense

The calculated apportionment of the price of a tangible asset over the duration it is useful.

Components

The individual parts or elements that make up a larger product, system, or machine.

Depreciated Separately

An accounting method in which assets are depreciated individually, based on their own useful life and depreciation rate, rather than being grouped together with other assets.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements.