When a Company Has Its Sales Forecasts Prepared by Management

question 73

Multiple Choice

When a company has its sales forecasts prepared by management consultants, economists, or college professors, it is using a(n)

• A) expert forecasting survey.
• B) Delphi technique.
• C) random factor analysis.
• D) external judgment survey.
• E) market test.

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Definitions:

Control Environment

The set of standards, processes, and structures that provide the basis for carrying out internal control across the organization.

Reasonable Assurance

An acceptable level of certainty or confidence in the accuracy of financial statements, provided by internal controls.

Petty Cash Fund

A small amount of cash on hand used for covering minor or incidental expenses in a business.

Cash Short

A situation where the actual amount of cash on hand is less than the recorded amount in the accounting records.