Which of the Following Statements Is Correct

question 35

Multiple Choice

Which of the following statements is correct?

• A)The most important step when developing pro forma financial statements is to determine the breakdown of common equity between common stock and retained earnings.
• B)The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales.
• C)In a financial plan, the way that liabilities and owner's equity are projected to change depends on the firm's sales forecast.
• D)The capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.

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Definitions:

Table

A structured set of data arranged in rows and columns, making it easier to read, organize, and manage information.

Sizing Handles

Small points around a selected object in graphical user interfaces that allow the user to adjust the dimensions of the object.

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A feature in presentation software like Microsoft PowerPoint that displays miniature versions of all the slides in a presentation, allowing for easy reordering and organizing.

Chart Layout

The arrangement and appearance of elements within a chart, such as axis titles, legend, and data labels, which can be customized.