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:

Labor Efficiency Variance

A measure used in cost accounting to gauge the difference between the actual hours taken to produce a good or service and the standard hours expected, multiplied by the standard labor rate.

Labor Rate Variance

The difference between the actual cost of labor and its expected cost, based on standard rates and hours.

Standard Hours Allowed

The predetermined amount of time expected to be required to complete a unit of work, used as a benchmark in costing and efficiency analysis.

Excel Spreadsheet

A digital worksheet or grid in Microsoft Excel, where users can organize data, perform calculations, and analyze information.