In a Financial Planning Model

question 5

Multiple Choice

In a financial planning model:

• A) inputs are used to create the model.
• B) financial ratios are used to create the model.
• C) financial ratios are used to develop forecasts.
• D) equations are used to develop financial statements.

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Definitions:

Note Receivable

A financial claim against another entity that promises to pay the holder a specific sum of money on a certain date or on demand.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Account Receivable

Resources that a company has yet to receive payment for from customers, regarding delivered goods or services.

Interest Revenue

Earnings received through the act of providing loans or putting money into assets that generate interest.