Financial Planning, When Properly Executed

question 22

Multiple Choice

Financial planning, when properly executed:

• A)ignores the normal restraints encountered by a firm.
• B)ensures that the primary goals of senior management are fully achieved.
• C)reduces the necessity of daily management oversight of the business operations.
• D)helps ensure that proper financing is in place to support the desired level of growth.
• E)eliminates the need to plan more than one year in advance.

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Definitions:

IRS

The Internal Revenue Service, a U.S. government agency responsible for the collection of taxes and enforcement of tax laws.

C Corporation

A legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity.

Chart of Accounts

A systematic listing of all accounts used in the general ledger of an organization, categorized by assets, liabilities, equity, revenues, and expenses.

Tax Return Preparation

Tax return preparation involves compiling financial records, calculating income and expenses, and completing the necessary tax forms to comply with tax filing requirements.