One of the Characteristics of Forecasts Is

question 25

Multiple Choice

One of the characteristics of forecasts is

• A) forecasts are always right.
• B) forecasts are always wrong.
• C) short-term forecasts are usually less accurate than long-term forecasts.
• D) long-term forecasts are usually more accurate than short-term forecasts.
• E) none of the above

---

Definitions:

Operating Activity

Transactions and events related to the core business operations of a company, including revenue generation and expenses related to producing goods and services.

Gain

A financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Indirect Method

A method used in cash flow statements to adjust net income for the changes in non-cash accounts to calculate the cash from operating activities.

Depreciation Expense

Depreciation Expense is an accounting method used to allocate the cost of a tangible asset over its useful life, representing how much of an asset's value has been used up over a specific period.