Which of the Following Statements Is NOT True About Financial

question 32

Multiple Choice

Which of the following statements is NOT true about financial planning models?

• A) Financial statements serve as the first major input and become the baseline to compare the projected financial statements.
• B) Economic forecasts and their impact on the firm's sales are also included in financial planning models.
• C) Investment and financing decisions are not considered as inputs in financial planning models.
• D) Changes in a firm's balance sheet and income statement items as a result of the growth in sales are also used in these models.

Comprehend sales revenue recognition and the impact of collecting sales taxes on financial reporting.

Recognize the accounting treatment for subscriptions and the revenue recognition principle.

Understand the categorization and implications of employer payroll taxes and liabilities.

Ability to identify and prepare necessary adjusting entries for accrual accounting purposes.

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Definitions:

Total Utility

The overall satisfaction or pleasure a person derives from consuming a certain amount or quantity of goods or services.

Limited Income

Income that is not sufficient to meet the minimum standard of living or personal financial needs.

Total Product Curve

Illustrates the total output of a good or service produced by a firm as a function of the input used.

Process Innovation

An improvement in the methods or technologies used in the production of goods and services, aimed at increasing efficiency or quality.