The Further Out the Time Horizon, the More Accurate the Forecast

question 21

True/False

The further out the time horizon, the more accurate the forecast will be.

---

Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowing of the company.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Indirect Method

A cash flow statement formulation approach that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Operating Activities

Activities directly related to the primary business operations, such as selling goods and services.