Flashcards in Chp2-Quiz Deck (10):
Qualitative analysis is the first step in the development of pro forma statements
Which statement is typically projected first?
Precise forecasts which may be supported by great detail are useless if they do not approximate reality.
Which of the following is a qualitative factor of the company?
Fixed costs, product users, marketing strategies
Ordinarily, which of the following is decided upon first in projecting income statements?
Sales growth rate
Surveys produced by Robert Morris Associates are useful in
Vertical analysis is useful in projecting financial statements because it allows you to project items relative to a benchmark
One of the qualitative factors that impacts the industry is an industry maturity and profit trends.
The most significant portions of your projections are, no matter how carefully contrived, still more than educated guesses.