________ Forecast Is Based on the Relationships Between the Firm's

question 2

Multiple Choice

________ forecast is based on the relationships between the firm's sales and certain economic indicators.

• A) An internal
• B) An external
• C) A sales
• D) A pro forma

Recognize the need for and challenges of international accounting standards.

Familiarize with basic concepts and definitions in accounting including assets, liabilities, and owner's equity.

Identify ethical considerations in financial accounting on an international scale.

Grasp the types of business organizations and their commonality across different countries.

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Definitions:

Operating Income

Operating Income, also known as operating profit, reflects the amount of profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Financial Risk

The possibility of losing money on an investment or business venture.

Shareholders

Individuals or entities that own shares of stock in a corporation, giving them rights to dividends and a stake in the company's ownership.

Preferred Shares

Preferred shares represent a class of ownership in a corporation with a fixed dividend and priority over common shares in asset liquidation.