EBK PFIN
EBK PFIN
6th Edition
ISBN: 8220103648844
Author: Billingsley
Publisher: CENGAGE L
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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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