Which of the Following Would Be Considered Part of Financing

question 51

Multiple Choice

Which of the following would be considered part of financing feedbacks in the financial forecasting process?

• A)Funds that a firm must raise externally through new borrowing or by selling new stock to meet its financial goals.
• B)The change in current assets that occur when a firm implements a sales forecast.
• C)The effects forecasts of the economic prospects for the nation, region, and industry have on the taxes the firm must pay on the income it earned in the most recent accounting period.
• D)The effects on the income statement and balance sheet of actions the firm takes to finance forecasted increases in assets.
• E)The effect that forecasted sales has on the owners of the firm.

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Definitions:

Loanable Funds

Money available for borrowing, which is determined by the savings in the economy plus the money provided by banks and other financial institutions.

Interest Rate

The requisition, as a percentage of the principal, placed by lenders on borrowers for asset use.

Macroeconomics

The study of economy-wide phenomena, including inflation, unemployment, and economic growth.

Consumption

The use of goods and services by households for personal needs or the process of using up resources or goods, leading to a decrease in their availability.