BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Income low and Expenses high
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Income high and Expenses low
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Both income and Expenses low
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Both Income and Expenses high
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Detailed explanation-1: -Key assumptions are critical to all aspects of the financial forecasts – balance sheets, income statements, cash flow, business plans and so on. They include detailed forecasted sales volumes; cost of sales, general administration expenses, and others.
Detailed explanation-2: -The objectives of financial forecasting are to analyze past, current, and future fiscal data and conditions to shape strategic decisions and policy. A financial forecast is a framework that presents estimates of past, current, and projected financial conditions.
Detailed explanation-3: -Four of the main forecast methodologies are: the straight-line method, using moving averages, simple linear regression and multiple linear regression. Both the straight-line and moving average methods assume the company’s historical results will generally be consistent with future results.