Which of the following statement about the relationship between financial planni

ID: 2577228 • Letter: W

Question

Which of the following statement about the relationship between financial planning and sales forecasts is true?

Financial planning is futile because its inputs, sales forecasts, are never accurate.

Financial planning allows a firm to draw up pro forma statements of comprehensive income and financial position.

Financial planning allows us to examine the interactions between investment and financing needs at different possible sales levels.

Financial planning allows a firm to forecast the exact sales level in the near future.

Sales forecasts are the only assumptions required for financial planning purposes.

Which of the following statement about the relationship between financial planning and sales forecasts is true?

Answer is :

Financial planning allows us to examine the interactions between investment and financing needs at different possible sales levels.

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