Which of the Following Is Not a Reason for Building

question 57

Multiple Choice

Which of the following is not a reason for building financial plans?

• A) Considering options
• B) Contingency planning
• C) Choosing the optimal plan
• D) Forcing consistency

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Definitions:

Statement of Retained Earnings

A financial report detailing the changes in retained earnings over a specific period, influenced by net income and dividend payments.

Functional Currency

The primary currency used by a business or unit in its financial statements, reflecting the economic environment in which it primarily operates.

Income Tax Expense

The total amount of income tax a company is obligated to pay to governmental authorities based on its taxable income.

Functional Currency

The currency of the primary economic environment in which the entity operates, typically the currency in which an entity primarily generates and expends cash.