Which of the Following Statements Is CORRECT

question 32

Multiple Choice

Which of the following statements is CORRECT?

• A) the first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales.
• B) forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management's historical performance is evaluated.
• C) the capital intensity ratio gives us an idea of the physical condition of the firm's fixed assets.
• D) the afn equation produces more accurate forecasts than the forecasted financial statement method, especially if fixed assets are lumpy, economies of scale exist, or if excess capacity exists.
• E) perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings.

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Definitions:

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The process or practice of caring for children and guiding their growth and development.

Authoritarian

A style of governance, or in psychological terms, a parenting style characterized by strict discipline, demanding obedience, and limited warmth or responsiveness.

Expectations

Preconceived ideas or anticipations about future events or outcomes.

Maturity

A psychological state that signifies emotional and psychological growth and the ability to react to situations and relationships in an appropriate manner.