W h a t i s t h e f i n a n c i a l p l a n n i n g p r o c e s s ? C o n t r a s t l o n g - t e r m ( s t r a t e g i c ) f i n a n c i a l p l a n s a n d s h o r t - t e r m ( o p e r a t i n g ) f i n a n c i a l p l a n s. W h a t i s t h e p u r p o s e o f t h e c a s h b u d g e t ? W h a t r o l e d o e s t h e s a l e s f o r e c a s t p l a y i n i t s p r e p a r a t i o n ? B r i e f l y d e s c r i b e t h e b a s i c f o r m a t o f t h e c a s h b u d g e t .
W h a t i s t h e f i n a n c i a l p l a n n i n g p r o c e s s ? C o n t r a s t l o n g - t e r m ( s t r a t e g i c ) f i n a n c i a l p l a n s a n d s h o r t - t e r m ( o p e r a t i n g ) f i n a n c i a l p l a n s. W h a t i s t h e p u r p o s e o f t h e c a s h b u d g e t ? W h a t r o l e d o e s t h e s a l e s f o r e c a s t p l a y i n i t s p r e p a r a t i o n ? B r i e f l y d e s c r i b e t h e b a s i c f o r m a t o f t h e c a s h b u d g e t .
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA1: International Financial Reporting Standards
Section: Chapter Questions
Problem 3MCQ
Related questions
Question
T o p i c : F o r e c a s t i n g T e c h n i q u e s
- W h a t i s t h e f i n a n c i a l p l a n n i n g p r o c e s s ? C o n t r a s t l o n g - t e r m ( s t r a t e g i c ) f i n a n c i a l p l a n s a n d s h o r t - t e r m ( o p e r a t i n g ) f i n a n c i a l p l a n s.
- W h a t i s t h e p u r p o s e o f t h e c a s h b u d g e t ? W h a t r o l e d o e s t h e s a l e s f o r e c a s t p l a y i n i t s p r e p a r a t i o n ?
- B r i e f l y d e s c r i b e t h e b a s i c f o r m a t o f t h e c a s h b u d g e t .
- W h y d o e s t h e p r e s e n c e o f f i x e d c o s t s c a u s e t h e p e r c e n t - o f - s a l e s m e t h o d o f p r o f o r m a i n c o m e s t a t e m e n t p r e p a r a t i o n t o f a i l ? W h a t i s a b e t t e r m e t h o d ?
- D e s c r i b e t h e j u d g m e n t a l a p p r o a c h f o r s i m p l i f i e d p r e p a r a t i o n o f t h e p r o f o r m a b a l a n c e s h e e t .
N o t e : A n s w e r s s h o u l d b e q u i t e l o n g f o r m e t o u n d e r t a n d m o r e .
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