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Flashcards in Chp2-Quiz Deck (10):
1

Qualitative analysis is the first step in the development of pro forma statements

TRUE

2

Which statement is typically projected first?

Income Statement

3

Precise forecasts which may be supported by great detail are useless if they do not approximate reality.

TRUE

4

Which of the following is a qualitative factor of the company?

Fixed costs, product users, marketing strategies

5

Ordinarily, which of the following is decided upon first in projecting income statements?

Sales growth rate

6

Surveys produced by Robert Morris Associates are useful in

Quantitative Analysis

7

Vertical analysis is useful in projecting financial statements because it allows you to project items relative to a benchmark

TRUE

8

One of the qualitative factors that impacts the industry is an industry maturity and profit trends.

TRUE

9

The most significant portions of your projections are, no matter how carefully contrived, still more than educated guesses.

TRUE

10

General economic conditions is a subset of sales influences that impact an industry.

TRUE