We Start the Process of Building a Cash Forecast with Predicting

question 3

Multiple Choice

We start the process of building a cash forecast with predicting the cash inflow from future sales.This is called ________.

• A)a sales forecast
• B)a cash forecast
• C)a monetary forecast
• D)an expense forecast

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Definitions:

Carrying Value

The net amount at which an asset or liability is reported in the financial statements, factoring in its original cost and any related depreciation, amortization, or impairment costs.

Useful Life

The estimated period over which an asset is expected to be functional and contribute to the operations of a business, beyond which it might be deemed obsolete.

Consolidated Financial Statements

These are financial statements that aggregate the financial position and operations of a parent company and its subsidiaries, providing a comprehensive overview as if the group were a single entity.

Subsidiary

A company that is completely or partially owned and controlled by another company, known as the parent company.