In Using a Systems Approach to Financial Planning, It Is

question 74

Multiple Choice

In using a systems approach to financial planning, it is necessary to develop a

• A)pro forma income statement.
• B)cash budget.
• C)pro forma balance sheet.
• D)All of the options.

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Definitions:

Adjusting Entries

Journal entries made in preparation for financial statements to allocate income and expenses to the period in which they actually occurred.

Balance Sheet Account

An account found on the balance sheet which can include assets, liabilities, and equity accounts.

Income Statement Account

An account found in the income statement that records revenues, expenses, gains, and losses.

Income Statement Columns

The segments in an income statement that organize revenues, expenses, and profitability metrics to provide insights into a company's financial performance over a specific period.