A Forecast Based on All the Relevant Information Is

question 58

Multiple Choice

A forecast based on all the relevant information is

• A)an adaptive expectation.
• B)a future expectation.
• C)a rational expectation.
• D)always a correct expectation.
• E)a perfect forecast.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.

Revenue

The aggregate revenue from selling goods or services, which constitute a firm's central business functions.

Expense Accounts

Accounts used to record the consumption of assets or services that result in a decrease in owner's equity, excluding the withdrawal of business assets by the owner.

Income Summary Account

A temporary accounting ledger that aggregates all income and expenses over a period to calculate net profit or loss.