Which of the Following Statements Does Not Apply to Preventing

question 42

Multiple Choice

Which of the following statements does not apply to preventing "garbage in,garbage out" when implementing a forecasting game plan?

• A) The quality of the financial statement forecasts will depend on the quality of the
• Forecast assumptions.
• B) The quantities forecasted within financial statement forecasts will depend on the quantity of the forecast assumptions.
• C) Analysts should justify and evaluate the most important assumptions that reflect the critical risk and success factors of the firm's strategy.
• D) Analysts can impose reality checks on the assumptions by analyzing the forecasted financial statements using ratios, common-size, and rate-of-change financial statements.

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Definitions:

Body Language

Non-verbal communication, including facial expressions, eye contact, posture, touch, and attention to personal space.

Facial Expressions

The movements of the facial muscles that convey emotions and communication.

Eye Contact

The act of looking directly into another person’s eyes, often used as a form of nonverbal communication to convey attentiveness or confidence.

Personal Space

The physical space immediately surrounding someone, into which any encroachment feels threatening to or uncomfortable for them.