Which One of the Following Statements Is NOT True About

question 90

Multiple Choice

Which one 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) Macroeconomic forecasts and their impact on the firm's sales are also included.
• C) Investment and financing decisions are not considered as inputs.
• D) Changes in the firm's balance sheet and income statement items as a result of the growth in sales are also used in these models.

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Definitions:

API Gravity Degrees

A measurement system used to determine the density of petroleum liquids compared to water.

Price Per Barrel

The cost or price unit for crude oil and other commodities, measured per barrel, a standard unit for volume in the oil industry.

Standard Error of Estimate

The standard error of the estimate is a measure of the accuracy of predictions made with a regression line, quantifying the dispersion of observed values around the predicted values.

API Gravity Degrees

A measure of how heavy or light a petroleum liquid is compared to water, used in the oil industry to characterize crude oil.