Why Are Long-Range Predictions Considered Essential to Managing a Firm

question 81

Multiple Choice

Why are long-range predictions considered essential to managing a firm?

• A)To develop plans for possible new plants
• B)To have raw materials available for future demand
• C)To develop plans for future financing
• D)All of these answers are correct

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Definitions:

Reversing Entry

An accounting entry that counteracts an adjusting entry, made at the beginning of the next accounting period.

Accounts Receivable

Funds that customers owe to a company for products or services that have already been provided but not yet compensated for.

Fees Earned

Revenue recognized by a company or individual in exchange for services rendered.

Adjusted Trial Balance

A financial statement listing all the accounts and their final balances after all adjustments have been made.