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:

Neural Signal

Electric or chemical signals transmitted by neurons for communication throughout the nervous system.

Sensory Coding

The process by which sensory organs translate stimuli into neural signals for the brain to interpret.

Kinesthesis

The sensations generated by receptors in the muscles, tendons, and joints that inform us of our skeletal movement.

Skeletal Muscles

The muscles attached to the skeleton that are responsible for movement and posture, under voluntary control.