Preparing Comprehensive Financial Statement Forecasts Involves Six Steps

question 62

Multiple Choice

Preparing comprehensive financial statement forecasts involves six steps.Among these steps are all of the following except

• A)Project sales revenue for each period in the forecast horizon.
• B)Forecast depreciation expense and tax expense for each period.
• C)Forecast the company's financial structure and dividend policy for each period.
• D)All of these are steps typically taken when preparing financial statement forecasts.

---

Definitions:

Director Liability

The legal responsibility of a company's directors for actions or omissions that lead to financial loss or legal penalties.

Corporation Debts

Financial obligations and liabilities incurred by a corporation in the course of business, for which the corporation is legally responsible.

Pre-emptive Rights

The rights granted to shareholders to purchase additional shares in a company before the shares are offered to the public, to maintain their proportionate ownership.

Due Diligence

The thorough investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or contract with another party.