Which of the Following Represents a Way of Coping with Uncertainty

question 53

Multiple Choice

Which of the following represents a way of coping with uncertainty in a cash budget?

• A) careful estimation of cash budgets outputs
• B) developing a pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales
• C) always using the prior year's data for estimates of the future
• D) using scenario analysis, or "what if" approach, to analyze cash flows under a variety of circumstances

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Definitions:

Organizational Goal Setting

The process of establishing objectives and targets within an organization to guide actions and measure performance.

Survey Feedback

A method of gathering data from respondents and then providing them or organizations with the results for analysis or action.

Emotional Standstill

A state or condition where an individual experiences a lack of emotional growth, change, or progress.

Denial

Denial is a psychological defense mechanism wherein an individual refuses to accept reality or facts, thus avoiding dealing with uncomfortable emotions.