Chapter 24, Problem 20Q

To determine

Projections: Based on the past and present records any estimation or forecast made are said to be projections. The company can project or forecast its sale in case if the company has its business of sale of goods and services.

To identify: To identify some arguments against providing earnings projections.

O C, a financial writer, noted recently, “There are substantial arguments for including earnings projections in annual reports and the most compelling is that it would give anyone interested something which is now available to only a relatively selected few like large stockholders, creditors, and attentive bartenders.”