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Author Question: Which of the following represents a way of coping with uncertainty in a cash budget? A) careful ... (Read 68 times)

Bob-Dole

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on: Jul 10, 2018
Which of the following represents a way of coping with uncertainty in a cash budget?
 
  A) careful estimation of cash budgets outputs
  B) developing a pro forma income statement to forecast sales and then express the various income statement items as percentage of projected sales
  C) always using the prior year's data for estimates of the future
  D) using scenario analysis, or what if approach, to analyze cash flows under a variety of circumstances

Question 2

Consider the TVM equation: An increase in the present value will decrease the future value, other things remaining equal.
 
  Indicate whether the statement is true or false.


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jesse.fleming

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Reply #1 on: Jul 10, 2018
Answer to Question 1

D

Answer to Question 2

Answer: FALSE
Explanation: An increase in the present value will INCREASE the future value, other things remaining equal.


Bob-Dole

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

upturnedfurball

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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