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'Gap Analysis Is Useless Because It Only Identifies Yesterday's "Gaps

question 7

Essay

'Gap analysis is useless because it only identifies yesterday's "gaps" and tells us nothing about where tomorrow's "gaps" will occur.' Is this a fair criticism? Provide reasons.


Definitions:

Annuity

A fiscal instrument providing a constant flow of payments to a person, mainly serving as a source of income for individuals in retirement.

Periods

Intervals of time into which financial or operational activities are divided for reporting, planning, or analysis purposes.

Future Value

The value of an investment or sum of money at a specified date in the future, taking into account interest or capital gains.

Ordinary Annuity

A series of equal payments made at fixed intervals over a specified period.

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