Which One of the Following Statements Regarding Financial Planning Models

question 82

Multiple Choice

Which one of the following statements regarding financial planning models is false?

• A) The models should include as much detail as possible.
• B) The results of a model are pro forma financial statements.
• C) The plug variable maintains consistency.
• D) Financial analysis is not used in financial planning.

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Definitions:

Deferred Revenue

Money received by a company for goods or services which have not yet been provided, recorded as a liability on the balance sheet until the services are rendered or goods are delivered.

Adjusting Entry

A journal entry made at the end of an accounting period to update the accounts and ensure they reflect all revenues earned and expenses incurred during the period.

Deferred Revenue

Income received by a company for goods or services yet to be provided; recognized as a liability until the service or product is delivered.