Which of the Following Issues Is Addressed in a Financial

question 72

Multiple Choice

Which of the following issues is addressed in a financial plan?

• A) Where is the company headed?
• B) What capital resources does the management need to get there?
• C) How is the firm going to pay for the resources needed?
• D) All of these

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Definitions:

Property, Plant, and Equipment

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Reported Amount

The value of an item as presented in financial statements, considering the accounting principles and policies applied by the entity.

Capital Lease

A capital lease is a lease in which the lessee records the leased asset as if it has been purchased, creating both an asset and a liability on the balance sheet.

Economic Life

The estimated period over which an asset is expected to be economically usable, both for its original purpose or for other purposes.