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:

Buffer

A means or mechanism that reduces the impact of external changes or stresses, maintaining stability in a system or process.

Stress

A physical, mental, or emotional reaction to external pressures or demands that can affect an individual's overall sense of well-being.

Stress Related Disease

Health conditions that are directly or indirectly caused by or exacerbated by stress.

Social Support

Refers to the perception and actuality that one is cared for, has assistance available from other people, and is part of a supportive social network.