When Forecasting Long-Term Inflation Rates for Financial Planning Purposes,it Is

question 130

True/False

When forecasting long-term inflation rates for financial planning purposes,it is better to err on the high side rather than on the low side.

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Definitions:

Pretax Income

The amount of income earned by a business before taxes have been deducted, also known as earnings before taxes (EBT).

Inventory Amounts

The price of items that are up for sale at the termination of a bookkeeping period.

Audit

An examination of the financial reports to ensure that they represent what they claim and conform with generally accepted accounting principles.

Contra-Asset

A contra-asset account is an asset account where the balance of the account will either be a zero or a negative figure, which offsets the balance of the related asset account.