Which of the Following Statements Does Not Apply to Preventing

question 5

Multiple Choice

Which of the following statements does not apply to preventing "garbage in, garbage out" when implementing a forecasting game plan?

• A) The quality of the financial statement forecasts will depend on the quality of the forecast assumptions.
• B) The quantities forecasted within financial statement forecasts will depend on the quantity of the forecast assumptions.
• C) Analysts should justify and evaluate the most important assumptions that reflect the critical risk and success factors of the firm's strategy.
• D) Analysts can impose reality checks on the assumptions by analyzing the forecasted financial statements using ratios, common-size, and rate-of-change financial statements.

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Definitions:

Mainstream Customers

Consumers who represent the majority market for products and services.

Internal Corporate Communications

The exchange of information and messages within a company among employees, management, and executives to ensure a unified understanding of goals, policies, and procedures.

Unified Corporate Image

A coherent and consistent representation of a company's brand and identity across all communication channels and interactions.

Business Rules

Specific guidelines, criteria, or conditions defined within a business to govern decisions, processes, and operations in alignment with organizational goals.