What Is the Primary Tool for Short-Term Financial Forecasting

question 118

Multiple Choice

What is the primary tool for short-term financial forecasting?

• A) pro forma income statement
• B) pro forma balance sheet
• C) pro forma cash budget
• D) capital budgeting

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Definitions:

Public Interest

The welfare or well-being of the general public, often considered in decision-making processes to ensure policies and actions benefit the majority.

Government

The system or group of people governing an organized community, often a state or nation.

External Benefit

A positive effect or advantage that results from a product or service's production or consumption, which affects third parties not directly involved in the transaction.

Tax

A financial charge imposed by a government on individuals or entities, primarily to raise revenue for public expenditures.