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:

Guaranteed Payment

Payments made to partners in a partnership regardless of the partnership's income, often for services rendered or for the use of capital.

Separately Stated Item

Items on a partnership or S corporation tax return that are listed separately to ensure proper tax treatment at the individual level.

Ordinary Expense

In tax terminology, ordinary expense refers to any expense common and accepted in your trade or business operation.

Income Recognition

The accounting principle stating that income should be recognized in the accounting period in which it is earned, regardless of when the cash is received.