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

---

Definitions:

Primary Source

An original document or firsthand account not interpreted by another person or source.

Surgery

A medical procedure involving an incision with instruments; performed to repair damage or arrest disease in a living body.

Comfort

A state of physical and emotional well-being where an individual is free from pain, distress, or anxiety.

Objective Data

Information that is observable and measurable directly, not influenced by personal feelings or opinions.