The Primary Reason the Income Statement Is Forecast Prior to the Balance

question 55

Multiple Choice

The primary reason the income statement is forecast prior to the balance sheet in the financial planning process is because ______ must be estimated. 

• A)current liabilities that change naturally with changes in sales
• B)funds that must raise externally through new borrowing or by selling new stock
• C)the market value of stock in the coming year
• D)the amount of retained earnings the company expects to generate during the year
• E)the total of cash flows from various activities during the year

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Definitions:

Metastases

The spread and invasion of cancer cells to other organs or tissues. When this happens, the disease is said to have metastasized.

Malignancy

A term used to describe cells or tumors that are cancerous and have the ability to grow uncontrollably and spread to other parts of the body.

Benign

Refers to a condition, tumor, or growth that is not cancerous and does not spread to other parts of the body.

Cigarette Smoking

The act of inhaling and exhaling the smoke of burning tobacco, typically contained in cigarettes, which is a major risk factor for numerous health issues.