A Benefit of Using Projected Balance Sheets and Income Statements

question 14

Multiple Choice

A benefit of using projected balance sheets and income statements is that

• A) an organization can compute projected financial ratios under various scenarios.
• B) money can be put aside to pay future income taxes.
• C) insurance needs can be computed.
• D) it is useful in analyzing past performance.
• E) all of the above

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Definitions:

Specific Gravity

The ratio of the density of a substance to the density of a reference substance, typically water, used to identify materials or test fluid conditions.

Tetrahedron

A polyhedron with four faces, typically each an equilateral triangle, making up one of the simplest geometrical shapes in three dimensions.

Octahedron

A polyhedron with eight faces.

Dodecahedron

A polyhedron with twelve flat faces, each face being a pentagon.