Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN: 9780357033609
Author: Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher: Cengage Learning
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Chapter 2, Problem 1LO
Summary Introduction

To discuss: The relationship between the financial statement and financial plans.

Expert Solution & Answer
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Explanation of Solution

The relationship between the financial statement and financial plans:

  • Financial plan defines the financial goals and financial statement is a tool used to develop and retain a continuous record on the financial plans.
  • Financial plan is a root map which directs the way to achieve the goals and financial statement shows where the person stands financially.

    Thus, these two elements establish the relationship and present a guideline to attain the financial goals. The plan is obviously impacted in the statement.

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