Chap015
Chapter 15
Financial Planning and Forecasting
Multiple Choice Questions 1. Which of the following is a set of financial statements depicting an operating division of a firm's expected financial situation in the foreseeable future under the most reasonable set of assumptions concerning relevant factors?
A. base case projections
B. deseaonalized financial statements
C. naïve financial statements
D. pro forma financial statements 2. The set of assumptions underlying the firm's financial plan and the resulting projected financial statements are accordingly often referred to as which of the following?
A. base case projections
B. deseaonalized financial statements
C. naïve financial statements
D. pro forma financial statements 3. Financial planning involves estimating projected cash flows, which is useful for all the following except:
A. setting internal goals.
B. providing information to shareholders and other external stakeholders concerning the firm's future expectations.
C. estimating the firm's future needs for internal and external financing.
D. auditors to determine if the company's annual report is true and correct. 4. The simplest approach to estimating a future period's sales is to assume that they will be equal to those of the latest observed period. In statistics, this is often simply referred to as which of the following?
A. base case approach
B. deseaonalized approach
C. naïve approach
D. pro forma approach 5. Forecasted sales drives all of the following except:
A. the amount of assets needed.
B. the liabilities needed.
C. the external funds needed.
D. earnings per share on the annual report. 6. Which of the following is defined as assuming that future sales will be equal to the average historical value across some relevant period?
A. average approach
B. base case approach
C. naïve approach
D. pro forma approach 7. Which of the following is used to remove the effects of seasonality from historic data?
A. average approach
B. base
Financial Planning and Forecasting
Multiple Choice Questions 1. Which of the following is a set of financial statements depicting an operating division of a firm's expected financial situation in the foreseeable future under the most reasonable set of assumptions concerning relevant factors?
A. base case projections
B. deseaonalized financial statements
C. naïve financial statements
D. pro forma financial statements 2. The set of assumptions underlying the firm's financial plan and the resulting projected financial statements are accordingly often referred to as which of the following?
A. base case projections
B. deseaonalized financial statements
C. naïve financial statements
D. pro forma financial statements 3. Financial planning involves estimating projected cash flows, which is useful for all the following except:
A. setting internal goals.
B. providing information to shareholders and other external stakeholders concerning the firm's future expectations.
C. estimating the firm's future needs for internal and external financing.
D. auditors to determine if the company's annual report is true and correct. 4. The simplest approach to estimating a future period's sales is to assume that they will be equal to those of the latest observed period. In statistics, this is often simply referred to as which of the following?
A. base case approach
B. deseaonalized approach
C. naïve approach
D. pro forma approach 5. Forecasted sales drives all of the following except:
A. the amount of assets needed.
B. the liabilities needed.
C. the external funds needed.
D. earnings per share on the annual report. 6. Which of the following is defined as assuming that future sales will be equal to the average historical value across some relevant period?
A. average approach
B. base case approach
C. naïve approach
D. pro forma approach 7. Which of the following is used to remove the effects of seasonality from historic data?
A. average approach
B. base